DIOM huge news: serious boomage coming
Diomed to sell unit to AngioDynamicsBoston Business Journal - Boston Business Journal
Friday, April 11, 2008 - 9:59 AM EDT
Diomed Holdings Inc. has entered into an asset purchase agreement with AngioDynamics Inc. for the sale of Diomed's U.S. operations for $8 million.
The Queensbury, N.Y., medical device manufacturer has offered to pay $8 million in cash for the part of Andover, Mass.-based Diomed's U.S. business engaged in the sale of systems for the laser treatment of varicose veins. AngioDynamics (Nasdaq: ANGO) also agreed to pay $3 million in cash for the assets of Diomed's business based in Cambridge, England.
The deal is subject to an auction process administered by the U.S. Bankruptcy Court. Diomed filed for Chapter 11 protection in mid-March. At the same time, Diomed's English operations, which also make varicose vein treatment systems, were placed under the control of the U.K. Insolvency Administrator.
AngioDynamics had been involved in a patent dispute with Diomed (OTCBB: DIOM) regarding its varicose veins laser treatment system, until April 2, when the companies reached a settlement. AngioDynamics agreed to pay Diomed $7 million in cash.
Diomed also has had patent litigation pending against two other companies. The purchase agreements would not give AngioDynamics any interest in the outcome of those claims.
In the 12-month period ending Sept. 30, Diomed had worldwide sales of $25.4 million. The company has been operating in the ordinary course of business as a debtor-in-possession while it has pursued the sale of its business.
"If we are successful with our offers, we will strengthen our presence in the growing market to treat varicose veins as well as expand our sales organization in both the United States and overseas," said Eamonn Hobbs, president and CEO of AngioDynamics. "Our plan is to incorporate the Diomed sales team in both the United States and in Europe into the AngioDynamics organization and to offer employment to many of the other Diomed employees."
