By Lisa Kerner
Charlotte, N.C., June 4 - Inverness Medical Innovations, Inc. agreed to acquire Cholestech Corp. in a stock-for-stock merger at a fixed exchange ratio of 0.43642 of a share of Inverness common stock for each share of Cholestech common stock.
The merger is conditioned upon approval by Cholestech's shareholders; approval by Inverness shareholders is not required. The transaction, structured as a tax-free reorganization, is slated to close during the fall of 2007.
"We expect that the acquisition of Cholestech, especially when coupled with our recent and pending acquisitions, will provide Inverness with the unique ability to assess cardiac risk, diagnose cardiac conditions and potentially monitor the condition and response to therapy of cardiac patients," Inverness chief executive officer Ron Zwanziger said in a company news release.
"The large installed base of Cholestech systems in physicians' offices will also be helpful as we continue to expand into this market segment."
Covington & Associates and Foley Hoag LLP advised Inverness, while Cholestech was advised by Savvian Advisors, LLC and Wilson Sonsini Goodrich & Rosati, PC.
Inverness is a diagnostic device developer based in Waltham, Mass.
Cholestech, located in Hayward, Calif., develops diagnostic tools for risk assessment and therapeutic monitoring of heart disease and inflammatory disorders.
| Acquirer: | Inverness Medical Innovations, Inc.
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| Target: | Cholestech, Corp.
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| Price per share: | 0.43642 of an Inverness share for each Cholestech share
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| Announcement date: | June 4
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| Expected closing: | Fall of 2007
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| Stock price for acquirer: | AMEX: IMA: $48.17 on June 1
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| Stock price for target: | Nasdaq: CTEC: $16.79 on June 1
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