Irvine-based Cardiac Science Inc. and Quinton Cardiology Systems Inc. of Bothell, Wash., on Monday agreed to combine under the Cardiac Science name.
Cardiac Science makes automated external defibrillation machines used to treat heart attacks. Quinton makes cardiology monitors.
Cardiac Science’s shareholders, together with senior bondholders, will own about 51% of the combined company, and Quinton’s shareholders will own 49%.
Owners of Cardiac Science’s senior debt agreed to exchange their notes and accrued interest worth $61 million for $20 million in cash and $53.8 million, or about 13% of the combined company’s common stock.
The new management team will be led by John R. Hinson, Quinton’s current chief executive, and Michael K. Matysik, its chief financial officer, who will each continue in those roles for the combined company.
Raymond W. Cohen, Cardiac Science’s chairman and chief executive, will serve as chairman of the combined company, with Ruediger Naumann-Etienne, Quinton’s chairman, serving as vice-chairman.
The company will be based in Bothell.
The deal has been approved by both boards and is set to be completed in the third quarter. After completion, the new company’s board will include five Quinton members and four from Cardiac Science.
The combined company will have $170 million to $180 million in sales this year, Cardiac Science said. Before the deal was announced, Cardiac Science’s market value was $163 million, with Quinton’s checking in at $137 million.
Meanwhile, Cardiac Science reported its fourth-quarter earnings results after the close of trading Monday.
The company said it lost $3.4 million on revenue of $20.7 million in the fourth quarter, versus a loss of $6.5 million on revenue of $17.7 million a year earlier.
