Abbott (ABT) acquires Cardiovascular Systems (CSII) in 'brilliant move'

(Updated - February 9, 2023 11:27 AM EST)

UPDATE: Updated to include analyst comments.

Abbott (NYSE: ABT) announced today that the medical device company has entered into a definitive agreement to acquire Cardiovascular Systems, Inc. (NASDAQ: CSII). Under terms of the agreement, CSII stockholders will receive $20 per common share at a total expected equity value of approximately $890 million.

"The acquisition of CSI will add new, complementary technologies to Abbott's leading vascular device offerings," said Lisa Earnhardt, executive vice president, Medical Devices, Abbott. "CSI has a talented and experienced team and a leading atherectomy system that will allow Abbott to provide physicians more tools to help patients live fuller lives."

"We are pleased to have reached an agreement with a leading global company that shares our passion for the development and commercialization of innovative solutions for treating complex peripheral vascular disease and coronary artery disease," said Scott Ward, CSI's chairman, president and chief executive officer. "We believe combining with Abbott delivers value to our patients, physician customers, employees and stockholders while continuing our work to save limbs and save lives every day."

Oppenheimer analyst, Suraj Kalia called the announcement "a brilliant chess move." Saying the acquisition by ABT is "a master class in timing and vision." She noting that not only is CSI's atherectomy asset being acquired for cheap, this deal is essentially a Buy one product; get three off.

Upon close, the transaction is expected to be neutral to Abbott's recently issued 2023 ongoing earnings per share guidance.

J.P. Morgan Securities LLC is serving as financial advisor to CSII.

Shares of CSII are up 48.27% in mid-day trading on Thursday, while ABT trades down 0.19%.

By Michael Elkins | [email protected]

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