St. Jude Medical acquires Radi Medical Systems





St. Jude Medical, Inc.and Radi Medical AB announced the completion of St. Jude Medical's acquisition of Radi Medical Systems AB for $250 million in cash.

St. Jude Medical, Inc.and Radi Medical AB announced the completion of St. Jude Medical's acquisition of Radi Medical Systems AB for $250 million in cash.

Radi Medical Systems' pressure measurement guidewire, PressureWire(R) Certus, comprises approximately a 70 percent share of the global market for physiological assessment of coronary lesions. The product is supported by a large and growing body of clinical evidence, including the FAME ("Fractional Flow Reserve vs. Angiography for Multivessel Evaluation") study. The results of the FAME study were presented at the Transcatheter Cardiovascular Therapeutics conference in October 2008, and can be viewed at www.famestudy.com. The market for physiological assessment of coronary lesions totaled over $60 million in 2008 and is projected to continue growing at a strong double-digit rate.

Daniel J. Starks, chairman, president and chief executive officer of St. Jude Medical said, This acquisition will accelerate the expansion of St. Jude Medical's cardiovascular growth platform and benefit the customers, employees and shareholders of both companies. We look forward to capturing strategic synergies through this acquisition and further expanding our investment in our cardiovascular division technology, products and programs.

Thomas Engstrom, chief executive officer of Radi Medical Systems, said, We are pleased to join with the industry leader in active vascular closure and a partner who shares our vision of developing innovative cardiovascular technologies that improve patient care. This transaction brings together complementary product lines and, through St. Jude Medical's sales and distribution infrastructure, extends our reach to even more physician customers for the benefit of the patients they help everyday.

With this transaction, Radi Medical Systems will become part of the St. Jude Medical Cardiovascular Division. The transaction is expected to be neutral to St. Jude Medical's consolidated earnings per share in 2009 and is expected to be positive to consolidated earnings per share beginning in 2010.