Thoratec Labs and Thermo Cardiosystems to Merge

(Pleasanton, CA, USA) have agreed to merge in a tax-free exchange of stock valued at US$572 million. The merger will combine the knowledge and resources of two growing companies in the cardiac device market.

Thoratec develops and markets a ventricular assist device that is widely used as a bridge to transplant and for heart recovery following surgery. The company also markets vascular access and bypass grafts. Thoratec reported revenues of $22.5 million in 1999. Thermo Cardiosystems also markets a left ventricular-assist system and as well as an electric HeartMate heart-assist device and blood coagulation testing equipment. The company's 1999 revenues were $79.1 million.

The agreement includes the International Technidyne and Nimbus subsidiaries of Thermo Cardiosystems. Upon completion of the merger, Thermo Cardiosystems' parent, Thermo Electron Corp., will own approximately 34% of Thoratec. The combined new company will be called Thoratec Corporation.

"The proposed combination of these two successful companies will create a world-class medical technology company and assure that we remain competitive within the dynamic world of cardiac surgery and congestive heart failure,” said D. Keith Grossman, president and CEO of Thoratec.