NEW YORK (AP) — Medical device company Medtronic Inc. said Thursday it has agreed to buy heart device maker ATS Medical Inc. for $350 million in cash, expanding its products for cardiac surgery.
Medtronic is offering ATS Medical $4 per share, which is a 54 percent premium to the stock's closing price on Wednesday.
Including the assumption of debt, Medtronic values the deal at $370 million. Medtronic did not say when it expects the deal to close or what effect the acquisition would have on its 2010 results.
Medtronic sells products including heart devices and spinal implants, and ATS makes products for use in heart surgeries, including heart valves and cryoablation products, in which extreme cold is used to treat heart defects.
The deal depends on the approval of ATS shareholders and regulatory agencies. Both companies are based in Minneapolis.
Shares of ATS Medical jumped $1.40, or 54 percent, to close at $3.99. Over the past year, shares have traded in a range of $2.25 to $3.58.
Medtronic shares rose 50 cents to $43.84.