Abbott Laboratories has struck a deal to buy New Brighton, Minnesota-based medical-device maker Cardiovascular Systems Inc. in a transaction worth $890 million.
Abbott, which has its headquarters in northern Illinois between Chicago and Milwaukee, announced the deal for Cardiovascular Systems on Feb. 8. The company will pay $20 per share for CSI (Nasdaq: CSII), roughly a 50% premium over the smaller company's most recent stock price.
In a statement, Abbott officials said the deal would strengthen its portfolio of devices treating vascular disease.
CSI is a specialist in devices used for atherectomy, a minimally invasive treatment that's used to clear plaque buildup in arteries that can limit blood flow, especially in the legs. One of its core products is the Diamondback, so named because the device is encrusted with diamonds to help clear arterial walls of plaque. The procedure is often used by physicians to help improve other treatments, like balloon angioplasty or stent placements.
CSI also has an early-stage pipeline of complementary vascular intervention devices in development.
"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 CSI CEO Scott Ward in a statement. "We believe combining with Abbott delivers value to our patients, physician customers, employees and stockholders while continuing our work to save limbs and save lives every day."
CSI, which has roughly 750 employees, posted $232 million in revenue and a net loss of nearly $37 million in its last fiscal year. Earlier this month, it reported revenue of $61.5 million with a net loss of $7.9 million for its fiscal second quarter ending Dec. 31, 2022.
Abbott Labs (NYSE: ABT) is already familiar with the Minnesota medtech market; in 2017 it acquired Little Canada-based St. Jude Medical Inc. in a $25 billion deal.
