The St. Paul, Minn.-based medical device developer said the acquisition gives it access to four new surgical markets, including the treatment of structural defects in the heart.
St. Jude concluded its tender offer for AGAM stock yesterday.
Plymouth, Minn.-based AGA, which completed an initial public offering less than a year ago, had problems winning Food & Drug Administration approval for its Amplatzer PFO occluder structural defect treatment and cardiac plugs.
The company will be subsumed by St. Jude’s cardiovascular unit, which makes vascular closure and heart valve products. St. Jude expects $20 million to $25 million in revenue from the AGA business from the remaining period in the fourth quarter 2010, according to the company.
The merger survived a lawsuit filed on Nov. 1 by AGA shareholders who alleged that “the proposed transaction is the product of a flawed process that resulted from the board’s failure to maximize shareholder value," which prevented them from participating "in AGAM Medical’s long term prospects.” The plaintiffs had cited the fact that 65 percent of AGA Medical’s shares are already tied up in the deal.
As a result of the transaction’s closure, shares of AGA Medical common stock will cease to be traded on the NASDAQ stock market after the close of trading today.