On Tuesday, ATS Medical Inc. (ATSI) said it has entered into definitive agreement to acquire the surgical cryoablation business of CryoCath Technologies Inc. (CYT.TO).
The assets being acquired include the SurgiFrost, FrostByte, and SurgiFrost XL family of products for which ATS Medical currently serves as CryoCath's exclusive agent in the United States and distributor in certain international markets.
Under the definitive agreements ATS Medical will pay CryoCath $22.0 million upon closing of the transaction, $2.0 million upon the achievement of certain manufacturing transition milestones, $2.0 million two years after closing and up to $4.0 million in contingent payments based on future sales of Surgifrost XL, an FDA cleared and CE Marked product planned for commercial release in the second half of 2007.
For the full year 2007, the company expects revenue to be about $49 to $51 million compared with the previously announced range of $46 to $47 million. Four analysts have consensus revenue estimate of $46.39 million for fiscal 2007.
For the Full year 2008, revenue is expected to be approximately $65 to $70 million. Four analysts have consensus revenue estimate of $57.02 million for fiscal 2008.
The Company expects to attain profitability during the second half of 2008.
The Company also expects to generate positive EBITDA in the first half of 2008.
For comments and feedback: editorial@rttnews.com