Monday, February 23, 2009

Zoll to buy Alsius for $12M

By Marc Songini

Chelmsford-based Zoll Medical Corp. intends to buy out the assets of California-based Alsius Corp. for $12 million.

Zoll (Nasdaq: ZOLL), through a wholly owned subsidiary, signed an agreement to purchase “substantially all the assets” of Alsius (Nasdaq: ALUS), a maker of hypothermia-related technologies. This will include Alsius’ intravascular temperature management device business. The agreement covers the intellectual property and other intangibles, as well as inventories and fixed assets. In turn, Zoll will assume warranty obligations relating to Alsius’ existing installed base of products.

Zoll makes products that assist in patient resuscitation. Earlier this month, , Zoll filed a patent infringement lawsuit against Alsius. Now, with this buyout, Zoll will collapse together the operations of the acquired business in its Sunnyvale, Calif., facilities. The transaction’s close depends on the approval of Alsius shareholders and other customary closing conditions.

Zoll’s chairman and CEO Richard Packer -- a Mass High Tech All-Star in 2006 -- stated this move underscored the company’s commitment to therapeutic temperature management. This acquisition, with the technology acquired through its 2007 purchase of the assets of Radiant Medical Inc., should make Zoll a leader in the patient body temperature control market, he said. He also stated the company will provide the Alsius line of products to meet the ongoing needs of clinicians.

Zoll makes products for pacing, defibrillation, circulation, ventilation and fluid resuscitation. Users include clinicians, EMS professionals and lay rescuers who need to resuscitate sudden cardiac arrest or trauma victims. The company markets and sells its products in over 140 countries.