DIOM News
AngioDynamics Agrees To Buy Certain Diomed Ops For $11M
4:35 PM EDT April 10, 2008
DOW JONES NEWSWIRES
Diomed Holdings Inc. (DIO) agreed to sell its U.S. endovenous laser treatment operations to AngioDynamics Inc. (ANGO) for $8 million, subject to bankruptcy court approval.
Diomed will also sell its U.K. business, Diomed Ltd., to AngioDynamics for $3 million. That operation was placed under the control of a U.K. insolvency administrator in March.
The deal excludes the proceeds of Diomed's settlement of its '777 patent litigation with AngioDynamics and proceeds from Diomed's expected $3.6 million settlement with Vascular Solutions Inc., which is pending bankruptcy court approval.
Diomed, a medical device company, expects to complete the sale within 60 to 90 days. Diomed said it expects to sell its remaining assets "in due course."
Diomed will use existing cash, receivables and possibly up to $1.3 million in debtor-in-possession financing from AngioDynamics, to continue its operations until the transaction closes. Diomed said March 14, when it filed for Chapter 11 bankruptcy protection, that it would sell "certain" assets from its U.S. operations to Biolitec AG (BIB.XE), a medical laser manufacturer. Diomed didn't specify which operations would be sold in that deal.
Representatives from all three companies weren't immediately available for comment.
-Melissa Korn; 201-938-5400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
04-10-08 1634ET
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