Vascular Solutions Inc. said Wednesday it bought assets related to the cardiovascular surgery products Expro Elite and Micro Elite from Radius Medical Technologies for about $6.5 million in cash.
Vascular Solutions has been selling the products in the U.S. under a distribution relationship with Radius since 2008, while in international markets Radius has been selling the products through a network of independent distributors.
Sales of the products were $1.6 million during the last four quarters, consisting of $1.3 million in sales in the U.S. and $300,000 in international markets.
Vascular also gained several other heart surgery products through the deal.
It plans on transferring the manufacturing of the products from Radius' facility in Boston to Vascular Solutions' existing facility in Minnesota over the next six months.
Radius will be entitled to receive a cash earn-out payment of 25 percent of sales in excess of a target amount following each of calendar years 2011, 2012 and 2013. The target is $2 million, $2.5 million and $3 million for each of the calendar years, respectively.
Vascular expects the buyout to add about 2 cents per share to net income in 2011.
Shares of Vascular Solutions fell 4 cents to $11.65 in afterhours trading after rising 29 cents to close at $11.68 during the regular trading session.