Medtech giant Abbott is buying New Brighton-based Cardiovascular Systems Inc. for $890 million, expanding its portfolio in treating artery disease.
Abbott to buy New Brighton-based Cardiovascular Systems Inc. for $890 million
The acquisition allows Illinois-based medtech giant Abbott to expand its reach in treating arterial disease.
February 9, 2023 at 12:01AM
Cardiovascular Systems (CSI) specializes in atherectomy, a minimally invasive treatment for plaque build-up in arteries that can restrict blood flow. CSI shareholders will receive $20 per share as a part of the deal, pending necessary approvals.
"The acquisition of CSI will add new, complementary technologies to Abbott's leading vascular device offerings," Lisa Earnhardt, Abbott's executive vice president of medical devices, said in a statement. "CSI has a talented and experienced team and a leading atherectomy system that will allow Abbott to provide physicians more tools to help patients live fuller lives."
Started in 1989, CSI primarily has sold a single core product — the Diamondback 360 Peripheral Orbital Atherectomy System — and supporting guidewires and catheters. Physicians use the hand-held device to treat patients with arterial calcium.
With several other companies also making atherectomy devices, including Medtronic and Boston Scientific, CSI had been working to expand its offerings.
"We are pleased to have reached an agreement with a leading global company that shares our passion for the development and commercialization of innovative solutions for treating complex peripheral vascular disease and coronary artery disease," said Scott Ward, CSI's chairman and CEO.
The companies jointly announced the deal Wednesday evening.
Abbott and CSI do not have an estimate for the closing of the transaction.
CSI was scheduled to report second-quarter results on Thursday, but canceled the planned conference call following the acquisition announcement.
In a separate news release Wednesday evening, CSI reported quarterly revenue of $61.5 million with a net loss of $7.9 million.
"In light of this announcement, we will not respond to investor questions regarding the proposed transaction and CSI will not host investor meetings during the closing period," CSI spokesman Jack Nielsen said in an email.
For its fiscal year 2022, which ended June 30, CSI reported $236.2 million in revenue and a net loss of $36.9 million.
As of June 30, CSI had 725 full-time employees.
Abbott, a Fortune 500 company with about 5,000 employees in Minnesota, reported revenue of $43.6 billion for 2022.
With supplier issue now resolved, the Minnesota-run medtech company expects to “reach and then exceed” market growth in the fast-growing sector for “pulsed field” atrial fibrillation treatments.
