Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.Thoratec, a US-based manufacturer of circulatory support products, and HeartWare International, an Australian medical device company, have entered into a definitive merger agreement under which Thoratec will acquire HeartWare for a consideration of approximately $282 million, of which approximately 50% will be paid in cash and approximately 50% will be paid in shares of Thoratec common stock.
Subscribe to our email newsletter
Upon completion of the transaction, HeartWare’s operations will be integrated into Thoratec’s cardiovascular division and the combined company will offer a broad portfolio of approved devices and will continue to develop emerging technologies for the treatment of heart failure patients, said Thoratec.
Under the merger agreement, each share of HeartWare common stock will be converted into the right to receive $14.30 in cash and 0.6054 of a share of Thoratec common stock, reflecting a current per share price of approximately $30.19 for each share of HeartWare common stock. In addition, Thoratec will provide HeartWare a convertible loan facility of up to $28 million to fund ongoing operations until the closing of the transaction, which is currently expected to occur in the second half of 2009.
The boards of directors of both companies have approved the transaction. The transaction is subject to approval of HeartWare’s stockholders and satisfaction of other customary closing conditions, including regulatory clearance.
Gary Burbach, president and CEO of Thoratec, said: “We believe that combining the strengths of the two companies will enable us to build upon each of our strong technology and product platforms, giving more and better options for a large and significantly underserved heart failure patient population.
“Because of the complementary nature of Thoratec’s and HeartWare’s products, the combined company intends to aggressively develop and make available to patients both Thoratec’s and HeartWare’s products using Thoratec’s extensive clinical and administrative support network.”