HeartWare International Inc. (HTWR - Snapshot Report), a global provider of miniaturized ventricular assist devices (VAD) for diagnosis of advanced heart failure, recently announced that it has closed its acquisition of WorldHeart Corporation (WHRT) after obtaining the approval of the latter's stockholders.
The acquisition is expected to enhance HeartWare’s available product portfolio by including WorldHeart’s advanced technology. Management at HeartWare asserts that the acquisition underlines the company’s near-term focus of global leadership in the ventricular assist device (VAD) market.
WorldHeart is also a global provider of mechanical circulatory support systems. It is currently developing an advanced continuous flow pump, the MiFlow VAD. The company’s technical know-how and skill set is expected to boost HeartWare’s research efforts. The merger will not only complement HeartWare’s existing product line, but also bolster its intellectual property portfolio.
Per the agreement, HeartWare acquired and merged the outstanding voting securities of WorldHeart for $8 million of its common stock. The amount is based on the terms and conditions of the acquisition. As calculated, each share of WorldHeart common stock has been altered into the right to procure 0.003 shares of HeartWare common stock.
Following the issuance of around 83,000 new shares of HeartWare common stock to WorldHeart stockholders, HeartWare outstanding common stock will increase to roughly 14,275,000 shares.
Headquartered in Framingham, Massachusetts, HeartWare is an innovator and producer of miniaturized implantable heart pumps. The company faces a tough competitive landscape with Thoratec Corp (THOR - Analyst Report).
The HeartWare Ventricular Assist System is currently under FDA review since the company submitted its Premarket Approval (PMA) application in December 2010. Once approved, HeartWare is expected to close the technological gap and end Thoratec’s dominance for the bridge-to-transplant (BTT) indication.
HeartWare currently retains a Zacks #3 Rank, which translates into a short-term Hold rating.