Vascular Solutions Inc. (NSDQ:VASC) bought Radius Medical Technologies Inc.’s vascular retrieval snares in a $6.5 million cash deal.
The acquisition by the Minneapolis-based medical device developer includes all of Radius’ Expro Elite and Micro Elite product assets.
Acton, Mass.-based Radius Medical developed the snares to retrieve or manipulate intravascular coils, balloons, catheters or guidewires from the cardiovascular system in minimally invasive surgical procedures.
Vascular Solutions has been selling the snares in the U.S. since 2008 as part of a distribution relationship with Radius, but not yet in international markets, according to a press release. Its acquisition also includes Radius’ Quattro Elite and Sympro Elite snares and its Oracle retrieval system.
Vascular Solutions plans to move the manufacturing of its new products from Radius’ Boston facility to Minnesota over the next six months, it said.
The $6.5 million acquisition fee consists of $5 million paid at closing and $1.5 million payable after the transfer of the manufacturing operations. Radius will be entitled to receive royalties for 2011, 2012 and 2013 of 25 percent of the new acquisitions’ sales. In the last four quarters, sales of the products were $1.6 million.
Vascular Solutions posted profits of $1.5 million, or 9 cents per diluted share, on sales of $19.9 million during the three months ended Sept. 30. That compares with profits of $1.4 million, also 9 cents per diluted share, on sales of $17.2 million during the same period last year.