Weeks after rejecting a hostile takeover bid, Irvine device maker Endocare Inc. said Monday it was combining with Galil Medical Ltd., an Israeli company.
The stock-for-stock deal will lead to current Endocare shareholders owning 52% of the combined company, with Galil stockholders owning 48%, Endocare said in a release.
Endocare didn’t disclose the total value of the deal.
The combined company, which will retain the Endocare name, will focus on cryoablation, a minimally invasive process to freeze and destroy cancerous tumors.
Endocare said that the new company plans to use cryoablation to treat several ailments, including prostate cancer and kidney tumors.
The combined company had sales of $55.6 million in the 12 months ended Sept. 30 and will keep its corporate office in Irvine.
Martin Emerson, Galil’s chief executive, and Michael Rodriguez, Endocare’s chief financial officer, will lead the management team of the combined company.
In August, Endocare rejected a $26.9 billion unsolicited takeover bid from HealthTronics Inc. of Austin, Texas, saying that offer undervalued it. HealthTronics eventually walked away from that deal.
Endocare also released its third-quarter financial results.
The device maker posted a narrowed net loss of $921,000 in the quarter, compared to $984,000 in the year-ago period. Revenue was up 4% to $7.6 million.
Analysts expected Endocare to lose $1.6 million on revenue of $8.25 million.
Endocare’s shares fell 15% with a market value of $11.3 million in Nasdaq trading Monday.
