St. Jude Medical (STJ) Announces Agreement To Acquire Velocimed, Inc.; Velocimed Products Expand St. Jude Medical's Cardiology Business
10/19/2005 5:12:43 PM
ST. PAUL, Minn.--(BUSINESS WIRE)--Feb. 15, 2005--St. Jude Medical, Inc. (NYSE:STJ) announced today it has signed a definitive agreement to acquire the business of Velocimed, LLC ("Velocimed"), a privately-owned company located in Maple Grove, Minnesota. Velocimed develops and manufactures specialty interventional cardiology devices. Under the terms of the agreement, St. Jude will acquire Velocimed's business for a cash purchase price of $82.5 million, less an estimated $8.5 million of cash at Velocimed upon closing, plus additional contingent payments tied to revenues in excess of minimum future targets, and a milestone payment upon U.S. Food and Drug Administration (FDA) approval of the Premere(TM) patent foramen ovale (PFO) closure system. The first additional contingent payment contemplated under the agreement would be paid in March 2007.
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