Image Source: HeartWare

Thoratec will acquire its rival HeartWare for $282 million, of which approximately 50 percent will be paid in cash and approximately 50 percent will be paid in Thoratec common stock.

In addition, the Framingham, Mass.-based Thoratec will provide HeartWare of Sydney, Australia, with a convertible loan facility of up to $28 million to fund ongoing operations until the close of the transaction, which is currently expected to occur in the second half of 2009. Thoratec said it expects the transaction will be dilutive to earnings into 2011.

Both companies develop implantable heart pumps. After completion of the deal, HeartWare's operations will be integrated into Thoratec's cardiovascular division.

The companies said that their boards of directors have approved the transaction, which is subject to HeartWare shareholder approval and other customary closing conditions, including regulatory clearance in the U.S.