AngioDynamics Buys Rita Medical Systems

Queensbury, NY-based AngioDynamics has purchased Rita Medical Systems, a Fremont, CA-based oncology products maker, for $220 million plus $3.3 million in assumed debt.

AngioDynamics, the manufacturer of medical devices to treat non-cardiac vascular disease, said that the deal will close at the end of the first quarter of 2007, subject to regulatory review, shareholder approval and other customary closing conditions.    

Rita Medical Systems manufacturers a system consisting of a radiofrequency energy generator and disposable accessories that is used in minimally invasive or laparoscopic procedures to superheat and kill tumors. The system is approved to treat liver cancer and is sold in Asia, Europe and the U.S. The company posted sales of $46.4 million in 2005.

Rita shareholders will receive cash and stock totaling $4.70 per share, based on the assumption that Angiodynamics’ average 10-day closing stock price three days prior to shareholder meetings will range between $18.18 and $27.29 per share. Following the merger, Rita shareholders will own a 34.5% stake in the combined company.

Angiodynamics shares closed Monday at $22.04 on the Nasdaq.