Abbott
(NYSE:ABT)
announced today that it completed its acquisition of Cardiovascular Systems.
In February, Abbott announced its agreement to acquire the atherectomy technology developer. Abbott agreed to pay $20 per common share of Cardiovascular Systems, leading to a total expected equity value of about $890 million.
Cardiovascular Systems develops the Diamondback 360 system for atherectomy in treating peripheral and coronary artery disease. The minimally invasive procedure cuts plaque from the walls of a blood vessel. Healthcare professionals use it in addition to or as an alternative to balloon angioplasty. The system prepares vessels for angioplasty or stenting to restore blood flow.
Abbott said in a news release that the acquisition provides the company with a complementary solution for treating vascular disease. The company develops its own angioplasty solutions and stents.
Pursuant to the terms of the agreement, CSI today became a wholly owned subsidiary of Abbott. As a result of the transaction’s completion, today marked the last day of trading for CSI shares on the Nasdaq market.
“For patients with complex cardiovascular disease, new and innovative therapies such as CSI’s leading atherectomy system are an opportunity to live better, fuller lives,” said Lisa Earnhardt, EVP, medical devices, Abbott. “The acquisition of CSI is a component of an overall investment in our vascular portfolio that enhances our ability to care for patients with peripheral and coronary artery disease.”
When the companies announced the deal, analysts were bullish on the prospects of the business combination.
“We think ABT’s size and scale may expedite development,” BTIG analysts Marie Thibault and Sam Eiber said. “With CSII trading at historically depressed valuation levels, we see this as a prudent purchase with a favorable risk/reward profile for ABT.”
