Replidyne and Cardio Systems to merge

Replidyne, a biopharmaceutical company focused on discovering, developing and in-licensing innovative anti-infective products, and fellow USA-based medical device firm Cardiovascular Systems have entered into a definitive merger agreement in an all-stock transaction. Under terms of the deal, Replidyne will issue new shares of its common stock to CS shareholders whereby they are set to own 83% of the combined company, and Replidyne's investors to control 17% on a fully-diluted basis using the treasury stock method, subject to adjustments as described in the merger accord.

David Martin, chief executive of CS, says this transaction is an expedient way to take his firm into the public market and generate a capital infusion for future expansion and, " with an estimated $35.0 million to $40.0 million in additional cash and investments from the merger, we can further expand our sales and marketing organization and infrastructure to drive revenue growth."