Indian firm to buy out Cardiac Science

October 19, 2010 by MassDevice staff

Bangalore-based Opto Circuits Ltd. enters into an cash-based acquisition deal for Cardiac Science Corp.

Opto Circuits, CSCX logos

Opto Circuits (India) Ltd. (BSE:532391) entered into a merger agreement with Cardiac Science Corp. (NSDQ:CSCX).

The Bangalore, India-based medical device developer plans to acquire Cardiac Science in an all-cash tender offer for $2.30 per share, a 10 percent premium over its Oct. 18 closing price and a 30 percent premium on CSCX's average closing price over the last 100 days.

"This transaction is expected to open many new global markets for Cardiac Science's products and will greatly enhance Opto Circuits' product offering and presence in the United States," Opto Circuits chairman Vinod Ramnani said in prepared remarks.

The boards of both firms unanimously approved the transaction, which will be followed by a second-step merger. Before the deal can go forward, at least 60 percent of Cardiac Science shares must be tendered. If Opto Circuits does not acquire a sufficient number of shares to effect a short-form merger, Cardiac Science's shareholders will need to approve the deal for it to proceed.

"We believe this transaction provides excellent value to our shareholders and expanded opportunity for our customers, employees and partners. Our business will benefit greatly from Opto Circuits' financial resources, operational capabilities and global scale," added Cardiac Science CEO Dave Marver.

The companies expect the deal to be complete by the end of the year.