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Abbott Laboratories ABT agrees to acquire Cardiovascular Systems IncCSII for $20/share for an equity value of approximately $890 million.
CSI offers devices for atherectomy, a minimally invasive treatment for plaque build-up in arteries that can restrict blood flow.
Procedural use of atherectomy can help maximize the benefits of standard balloon angioplasty or stent treatments in restoring blood flow in complex arterial disease.
CSI also has an early-stage pipeline of complementary vascular intervention devices in development.
“The acquisition of CSI will add new, complementary technologies to Abbott’s leading vascular device offerings,” said Lisa Earnhardt, EVP of Medical Devices of Abbott.
Upon close, the transaction is expected to be neutral to Abbott’s recently issued 2023 ongoing earnings per share guidance.
Q4 Earnings: Cardiovascular Systems reported Q2 FY23 sales of $61.5 million, up 3.9% Y/Y, missing the consensus of $63.08 million, with a gross profit margin of 70.0%.
Second-quarter net loss of $7.9 million, or $(0.20)/share below the consensus of $(0.15). The Adjusted EBITDA loss increased to $(3.7) million from $(3.0) million in the prior year.
Price Action: CSII shares are up 48.6% at $19.78 during the premarket session on the last check Thursday.
