Cardiovascular Systems and Replidyne complete merger

Cardiovascular Systems, a medical device company, has closed its merger with a subsidiary of Replidyne.

In connection with the merger, Replidyne changed its name to Cardiovascular Systems, Inc and its shares have been approved for trading on the Nasdaq global market under the symbol, CSII.

Through this transaction, an additional $37 million in net assets, primarily cash, is available to Cardiovascular Systems’s (CSI’s) business. The company plans to use the proceeds to advance its medical products and expand its sales and marketing organization.

Under terms of the merger agreement, the former CSI shareholders are entitled to receive approximately 83% of the combined company and Replidyne shareholders are expected to hold approximately 17% of the combined company, in each case on a fully diluted basis using the treasury stock method of accounting for options and warrants.

The combined company is headed by David Martin, CSI’s CEO and the CSI executive team. The combined board of directors consists of nine members, including two directors from Replidyne, Edward Brown and Augustine Lawlor. Glen Nelson is chairman of the board. Other directors are Brent Blackey, John Friedman, Geoffrey Hartzler, Roger Howe, David Martin and Gary Petrucci.

Mr Martin said: Given current market conditions, this merger was our best path for raising capital and to become listed on a major US stock market. With additional resources, we will expand our sales and marketing organization to drive revenue growth, and continue to invest in infrastructure and product development for future market expansion.