HealthTronics Makes Unsolicited Bid for Endocare

Medical equipment maker HealthTronics Inc. has offered Endocare Inc.’s board of directors about $26.9 million in a cash buyout deal as part of a move to widen its treatment scope.

The offer implies a total value of $26.9 million, based on 11.8 million shares of stock outstanding as of June 30.

“After carefully considering Endocare’s recent performance, balance sheet and comments during Endocare’s earnings call today, HealthTronics believes that its proposal to purchase Endocare’s outstanding shares represents a significant premium that reflects HealthTronics’ unique ability to better leverage Endocare’s technology and assets,” HealthTronics President and Chief Executive James Whittenburg said in a statement.

During the second quarter, Endocare slightly narrowed its loss to $2 million on a small bump in revenue to just over $7.9 million.

HealthTronics makes a range of products for urology, including prostate cancer treatments. Endo, meanwhile, focuses on cryoablation-based procedures, which use ice in surgical procedures to create low-freezing temperatures inside the body. The goal is to destroy cells within tissue and tumors and, with one focus being prostate and renal cancer.

In a statement, Endocare said its board of directors will review and consider the proposal.

SOURCE: boston.com