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news.Biopharmaceutical company Replidyne and Cardiovascular Systems, a developer of interventional treatment systems for vascular disease, have entered into a definitive merger agreement under which CSI will merge with Replidyne in an all-stock transaction.
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Under the terms of the agreement, Replidyne will issue new shares of its common stock to Cardiovascular Systems (CSI) shareholders whereby former CSI shareholders are expected to own 83% of the combined company, and Replidyne shareholders are expected to own 17% of the combined company on a fully diluted basis using the treasury stock method, subject to adjustments as described in the merger agreement.
The boards of directors of both Replidyne and CSI have unanimously approved the transaction, which is subject to customary closing conditions, including approval by the shareholders of each of Replidyne and CSI.
Upon consummation of the merger, Replidyne’s name will be changed to Cardiovascular Systems, and the combined company will apply for listing on the NASDAQ Global Market under a new trading symbol. The transaction is expected to close during the first calendar quarter of 2009.
David Martin, president and CEO of CSI, said: “Executing this transaction with Replidyne is an expedient way to take our company into the public market and generate a capital infusion for future growth.
“With an estimated $35 million to $40 million in additional cash and investments from the merger, we can further expand our sales and marketing organization and infrastructure to drive revenue growth and continue to invest in product development for future market expansion.”