Medical device maker Boston Scientific Corp. has purchased a controlling interest in Salt Lake-based Rubicon Medical Corp., with options to acquire the Utah company's remaining shares.
The $71.7 million deal, announced Thursday, included the purchase of 24.9 million shares (valued at $21.7 million) from Rubicon Medical's principal stockholders, Chairman David Berger and President and Chief Executive Officer Richard Linder.
The acquisition of the 24.9 million shares gives Boston Scientific a 53.6 percent ownership in Rubicon Medical. In 2003, Boston Scientific invested roughly $17 million in Rubicon in two separate transactions, gaining an 18 percent ownership in the company.
The latest deal also provides an offer for the purchase of all outstanding shares and options at $1.50 per share.
In addition, $83.7 million ($1.44 per share) is payable to shareholders if the company achieves certain sales goals, including marketing clearance for the Rubicon Filter from the U.S. Food and Drug Administration.
"This is a tremendous transaction for our shareholders," Linder said. "This is a great reward for those people in Utah who believed in us from the very beginning. A lot of people didn't think we'd make it. A lot of people bet against us."
As part of the acquisition, Linder will continue to maintain a leadership role at Boston Scientific, according to Charles Rudnick, a spokesman for Boston Scientific.
Linder said he likely would step aside as chief executive officer, but he could retain his position as president.
The 60 employees at Rubicon's Salt Lake facility will retain their jobs, said Linder, who added that the facility likely will be expanded.
Rudnick said the Rubicon Filter was a driving factor in Boston Scientific's acquisition of Rubicon Medical. On Thursday, the filter was granted CE Mark clearance, opening the door for sales in Europe and other international markets that accept the rating.
The Rubicon Filter is used in conjunction with coronary and carotid stenting procedures. The filter captures dislodged plaque by being deployed downstream from an artery's blockage prior to the opening of the stent.
Boston Scientific's stock closed down 30 cents at $29.90 per share Thursday on the New York Stock Exchange. Rubicon Medical's stock closed up 27 cents, or almost 18 percent, at a new 52-week high of $1.78 per share in over-the-counter trading.
E-mail: danderton@desnews.com