(Reuters) – St. Jude Medical Inc said on Monday it acquired Israel’s MediGuide Inc, a maker of technology used to guide catheters in minimally invasive medical procedures, for $283 million in cash, its second deal in as many days.
St. Jude purchased all outstanding shares of MediGuide, including a 41.3 percent stake owned by Elbit Systems Ltd. It also assumed net liabilities of about $17 million.
St. Jude, based in St. Paul, Minnesota, said it will record a charge of about $300 million for the deal in the fourth quarter of 2008.
MediGuide’s navigation system tracks a tiny sensor mounted on a needle, guide wire, catheter or other medical device placed in the body by a physician during a catheterization or other minimally invasive procedure. It is sold in Europe but not yet approved in the United States.
MediGuide will become part of St. Jude’s atrial fibrillation division.
St. Jude said it funded the acquisition with cash and the proceeds from a new three-year term loan established recently with a syndicate of banks.
Under terms of the agreement, St. Jude will pay $138 million in December 2008 and make subsequent payments of $111 million in November 2009 and up to $34 million in April 2010.
Banc of America Securities was the financial adviser to St. Jude.
On Sunday, St. Jude said it completed the acquisition of Sweden’s Radi Medical Systems, which makes a vascular closure device, for $250 million in cash. (Reporting by Susan Kelly, editing by Steve Orlofsky)