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FoxHollow to acquire Kerberos for $32 million
By Elaine Rigoli
Tampa, Fla., Aug. 28 - FoxHollow Technologies, Inc. signed a definitive merger agreement to acquire Kerberos Proximal Solutions, Inc. for about $32 million, of which $13 million is expected to be paid in stock.
FoxHollow may also make earnout payments after each of the second and third years following the transaction, based on 2½ times that year's sales less the value of all prior payments. The earnout payouts may be made in cash or stock at FoxHollow's discretion.
"We believe the Kerberos thrombectomy system is a great first addition to FoxHollow's product portfolio, which previously has been focused exclusively on SilverHawk Plaque excision in peripheral vessels. The product is easy for physicians to use and will nicely overlap our existing customer base. We believe the Kerberos products will find wide application in both the coronary and peripheral arteries and bring relevant clinical value to our patients," said John B. Simpson, FoxHollow's founder and chief executive officer, in a statement.
The transaction is expected to close by the end of the third quarter of 2006 and will have minimal impact on FoxHollow's revenue during the third and fourth quarters of this year, according to a news release.
The addition of Kerberos' operations is expected to reduce FoxHollow's 2006 earnings per share by $0.08 to $0.10, excluding one-time charges associated with the transaction, and is expected to be modestly accretive in 2007.
Based in Redwood City, Calif., FoxHollow develops minimally invasive plaque excision devices for the treatment of peripheral artery disease.
Kerberos is a privately held medical device company based in Cupertino, Calif.
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