Cardiovascular Systems, Inc. (NASDAQ: CSII) is engaged as a medical device company, which is focused on the research, development and commercialization of novel solutions to treat coronary and vascular diseases. Shares of the heart medical device company are surging 48% through early trading on Thursday, February 9, 2023. Over the past three months, Cardiovascular Systems has seen average daily volume of 260,730 shares. However, volume of 5.16 million shares or dollar volume of around $101.7 million, has already exchanged hands through early trading.
Shares of Cardiovascular Systems are rallying after the company announced it has entered into a definitive agreement to be acquired by Abbott Labs (NYSE: ABT) for $20 per share or a total transaction value of $890 million. With the acquisition, Abbott Labs will leverage Cardiovascular Systems’ atherectomy platform, which prepares vessels for angioplasty or stenting. CSII’s platform will serve as a complementary solution to Abbott’s existing vascular disease assets.
Cardiovascular Systems is considered to be an industry leader with its atherectomy devices, which can treat plaque build-up in the arteries through a minimally invasive treatment process. Furthermore, the heart medical device company has an enticing pipeline of early-stage vascular intervention devices that would serve as a complement to its existing platform.
Abbott says the transaction is expected to have a neutral impact to the company’s recently issued 2023 guidance. The transaction still requires approval from Cardiovascular Systems shareholders and regulatory agencies.
“We are pleased to have reached an agreement with a leading global company that shares our passion for the development and commercialization of innovative solutions for treating complex peripheral vascular disease and coronary artery disease,” said Scott Ward, CSI’s chairman, president and chief executive officer. “We believe combining with Abbott delivers value to our patients, physician customers, employees and stockholders while continuing our work to save limbs and save lives every day.”
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