Boston Scientific to pay up to $24.3m for Israeli start-up

The identity of the buyer of medical device company SI Therapies has been revealed.

4 April 11 17:10, Gali Weinreb and Shiri Habib-Valdhorn

The identity of the buyer of SI Therapies has been revealed: US medical devices giant Boston Scientific (NYSE: BSX), which the past has acquired Israeli companies Remon Medical and Labcoat, and has invested in many Israeli biomed companies and funds.

Aran Research Development & Prototypes has published new details in its financials about the agreement it signed to sell the subsidiary (55%), from which it emerges that Boston Scientific paid $5.13 million in cash, and that the purchase price could reach $24.3 million if milestones are reached.

In November 2010, Aran reported that SI Therapies, which has developed a cardiology product, had been sold to a foreign company under a contract that would yield an immediate profit of $3.4 million. Aran will provide to Boston Scientific consultancy services in relation to the product, which could expand its revenue from the agreement. Aran did not disclose what the product was, but from previous reports from Boston Scientific it can be understood that it is a device for treating peripheral blocked arteries.

Aran Research Development & Prototypes has a market cap of NIS 37.7 million on the Tel Aviv Stock Exchange. The company engages in engineering development, mainly for other companies, and also invests in start-up ventures.

Published by Globes [online], Israel business news - www.globes-online.com - on April 4, 2011

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