Opto Circuits (India), manufacturer of medical devices, is set to acquire US-based cardiology device maker-Cardiac Science Corporation. Under the definitive merger agreement, Opto has agreed to acquire all of the outstanding shares of Cardiac common stock for $2.30 per share.

While the shares of NASDAQ-listed Cardiac closed at $2.10, and at Opto's offering price would value it at $54.77 million.

On Tuesday, shares of Opto Circuits went down 1.2% to close at Rs 304 on the BSE. Cardiac reported revenues of $156.8 million in 2009, down 24% from 2008.

The boards of directors have unanimously approved the transaction, which will take the form of an all-cash tender offer by a wholly-owned subsidiary of Opto Circuits, followed by a second-step merger. The closing of the tender offer by Opto Circuits, which is expected to be commenced within 10 business days, is subject to customary conditions. The companies are targeting a late fourth quarter 2010 closing of the merger.

Vinod Ramnani, chairman of Opto Circuits said, "We are delighted to expand our presence in noninvasive diagnostic monitoring through this acquisition and are excited to enter the high-growth automated external defibrillation market. Cardiac Science has a strong reputation for innovative, high-quality products and services. This transaction is expected to open many new global markets for Cardiac Science's products and will greatly enhance Opto Circuits' product offering and presence in the US."

Cardiac Science manufactures and markets a family of advanced diagnostic and therapeutic cardiology devices and systems. The company has established cardiac businesses with the trusted brands like, Burdick, HeartCentrix, Powerheart and Quinton with customers in more than 100 countries worldwide.

Dave Marver, president and CEO of Cardiac Science said, "We believe this transaction provides excellent value to our shareholders and expanded opportunity for our customers, employees, and partners. Our business will benefit greatly from Opto Circuits' financial resources, operational capabilities, and global scale."

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