December 1, 2006—AngioDynamics Inc (Queensbury, NY) recently announced its pending acquisition of RITA Medical Systems Inc (Fremont, Calif) for around $220 million, plus the assumption of $3.3 million in net debt. AngioDynamics is a provider of medical devices for the diagnosis and treatment of peripheral vascular diseases and other non-coronary diseases; RITA is a provider of medical oncology devices.
“This combination of AngioDynamics and RITA will create a leader in serving the needs of interventional radiologists, vascular surgeons and other medical specialties with a compelling product portfolio of exciting technologies,” said Eamonn P. Hobbs, President and CEO of AngioDynamics. “Interventional oncology is a large and growing area for our existing customer base, and RITA’s leadership position, premium products and excellent reputation fit our strategy perfectly.”
The terms of the merger agreement call for each common share of RITA to be exchanged for 0.1722 of an AngioDynamics common share and a specified amount of cash based on AngioDynamics’ average closing stock price for the 10-day period ending three business days prior to the date of the shareholder meetings. AngioDynamics expects to issue approximately 7.86 million common shares in the transaction, and, additionally, to issue approximately 1.91 million common shares upon exercise of RITA options and warrants.