Thoratec Corporation Announces Sale of ITC Division to Warburg, Pincus Ventures, L.P. for $55 Million in Cash
Published: Nov 04, 2010
PLEASANTON, Calif., Nov. 4, 2010 /PRNewswire-FirstCall/ -- Thoratec Corporation (Nasdaq: THOR), a world leader in device-based mechanical circulatory support therapies to save, support and restore failing hearts, said today that it has sold its International Technidyne Corporation (ITC) division to an affiliate of Warburg Pincus LLC, pursuant to a definitive stock purchase agreement.
"We believe that this transaction provides a positive outcome for all parties, enabling Thoratec to focus our attention and resources on our exciting VAD business, led by the HeartMate II®, which has seen a very successful commercial launch for the Destination Therapy indication," said Gary F. Burbach, president and chief executive officer of Thoratec.
Thoratec received a payment of $55 million in cash upon the closing of the transaction, and beginning in 2011, ITC will no longer appear in Thoratec's financial statements. For the fourth quarter of 2010, a partial period of ITC's results will continue to appear as a discontinued operation in Thoratec's GAAP and non-GAAP income statements, where the business has been reported since the second quarter of 2010.
BofA Merrill Lynch acted as exclusive financial advisor and Latham & Watkins LLP acted as legal counsel to Thoratec.
Thoratec is a world leader in therapies to address advanced-stage heart failure. The company's product lines include the HeartMate® LVAS (Left Ventricular Assist System) and Thoratec® VAD with more than 15,000 devices implanted in patients suffering from heart failure. Thoratec is headquartered in Pleasanton, California. For more information, visit Thoratec's web site at http://www.thoratec.com. ITC is a leader in point-of care blood testing and skin incision products. For more information, visit ITC's web site at http://www.itcmed.com.
Thoratec, the Thoratec logo, HeartMate and HeartMate II are registered trademarks of Thoratec Corporation. ITC, A-VOX Systems, AVOXimeter, HEMOCHRON, ProTime, ProTime InRhythm, Tenderfoot and IRMA are registered trademarks of International Technidyne Corporation.
Many of the preceding paragraphs, particularly but not exclusively those addressing future performance or timelines for regulatory approvals, contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements can be identified by the words, "believes," "views," "expects," "plans," "hopes," "could," "will," and other similar words. Actual results, events or performance could differ materially from these forward-looking statements based on a variety of factors, many of which are beyond Thoratec's control. Therefore, readers are cautioned not to put undue reliance on these statements. Investors are cautioned that all such statements involve risks and uncertainties, including risks related to merger, acquisition or divestiture activities, regulatory approvals, the development of new markets including Destination Therapy, the growth of existing markets for our products, customer and physician acceptance of Thoratec products, changes in the mix of existing markets for our products, and the effects of FDA regulatory requirements. Forward-looking statements contained in this press release should be considered in light of these factors and those factors discussed from time to time in Thoratec's public reports filed with the Securities and Exchange Commission, such as those discussed under the heading, "Risk Factors," in Thoratec's most recent annual report on Form 10-K, and as may be updated in subsequent SEC filings. These forward-looking statements speak only as of the date hereof. Thoratec undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.
SOURCE Thoratec Corporation