St. Jude Medical has signed a definitive agreement to acquire LightLab Imaging, a subsidiary of Goodman, for approximately $90 million in cash.
LightLab develops optical coherence tomography (OCT), a high-resolution diagnostic coronary imaging technology. Earlier this month, the Westford, Mass.-based LightLab received FDA clearance of the first OCT products to be available in the U.S.
Upon closing, St. Jude will offer a portfolio that includes both OCT and fractional flow reserve (FFR) technology. St. Jude acquired its FFR measurement technology platform through the acquisition of Radi Medical Systems in December 2008. The LightLab business will become part of the St. Jude cardiovascular division.
The FDA cleared LightLab’s C7-XR Imaging System and companion C7 Dragonfly Imaging Catheter in early May. This intravascular imaging technology, comprising the console used in the hospital lab and the catheter inserted into the vessel, allows the clinician to readily see and measure important vessel characteristics.
The transaction is expected to close by the end of the second quarter, subject to customary closing conditions and regulatory approvals. The St. Paul, Minn.-based St. Jude said that except for a nonrecurring charge to be recorded at the time of closing, this acquisition does not change its outlook for 2010 consolidated earnings per share.
In connection with the transaction, Bank of America Merrill Lynch is acting as financial advisor and Gibson, Dunn & Crutcher as legal advisor to St. Jude. Brown Brothers Harriman is acting as financial advisor to LightLab and Choate, Hall & Stewart as legal counsel. Kitahama Partners is acting as legal counsel to Goodman.