I-Flow Inc., a Lake Forest medical device maker, said Friday that it bought a 15% stake in HAPC Inc. in a push to help HAPC buy one of its units.
I-Flow said in a statement that it bought the HAPC stake, made up of about 2.8 million shares, through private deals with third parties.
The price wasn’t disclosed, but shares of New York-based HAPC, which buys other healthcare companies, were trading at $5.45 a share on the bulletin board exchange, pegging the deal at an estimated $15.2 million.
I-Flow’s shares fell 3% in morning trading, counting a recent market value of $439 million.
I-Flow plans to use its stake in HAPC to vote in favor of HAPC’s buy of Infusystem, an I-Flow subsidiary that makes drug infusion pumps.
I-Flow said it would receive $100 million in cash and promissory notes if the deal’s approved. Additionally, I-Flow’s set to be eligible for a performance-based payment of $12 million.
