Thoratec Coporation (NASDAQ:THOR), a world leader in treating advanced heart failure, announced late Tuesday that its International Technidyne Corporation [ITC] division bought out all the shares of privately held A-Vox Systems Inc for $9 million in cash.
ITC is particularly excited about A-Vox's point of care testing expertise in the cardiac catheterization lab. A-Vox markets blood oxygen testing devices based on its patented light scattering technology that allows for direct measurements of whole blood.
ITC expects the deal to have no material effect on its 2006 earnings, and to be accretive in 2007.
The $9 million should not place significant pressure on Thoratec's pockets as the company currently holds almost $200 million in cash. The company does have about $150 million in debt, however.
It will be interesting to gauge the reaction of investors in the coming week.