Vascular Solutions has acquired the Expro Elite and Micro Elite snare products from Radius Medical and its subsidiary, Radius Medical Technologies, for $6.5 million.
Minneapolis-based Vascular Solutions has had a distribution agreement with Radius since 2008, for the distribution of the Expro and Micro Elite products in the U.S. Under the agreement, Vascular Solutions also will gain the rights to Radius’ Quattro Elite and Sympro Elite snares and Oracle retrieval system.
Vascular Solutions said that it expects to transfer the product manufacturing from Radius’ Boston facility to its own existing facility in Minnesota within the next six months. The $6.5 million acquisition price includes $5 million paid in cash at the closing of the deal and $1.5 million in cash upon completion of the transfer of the manufacturing processes.
Additionally, the company said that Radius will be entitled to earn-out payments during 2011, 2012 and 2013. The target amount for these calendar years are estimated to be $2 million, $2.5 million and $3 million, respectively.
The acquisition will be accounted for as a business combination in the fourth quarter of 2010 and it is estimated that $1 million will be allocated to the earn-out value, upping the total purchasing price to $7.5 million.
The company said that it expects $150,000 to be allocated towards tangible assets while $3.2 million and $4.2 million will be allocated to intangible assets and goodwill, respectively.