These excerpts taken from the MDT 8-K filed Jan 18, 2008.
IPD System, an interspinous process device for treating LSS that has been approved for marketing by the United States Food and Drug Administration (FDA) and which carries the CE Mark (a mark that allows the Company to market a product throughout the European Union). The purpose of the St. Francis acquisition was to enter the market for the treatment of LSS in the United States and worldwide. LSS is a narrowing or constriction of the spinal canal, and/or the peripheral passages through which the nerve roots pass, causing impingement on the spinal cord and the nerve roots extending from the spinal cord to the legs. LSS manifests itself primarily during extension (bending backwards) of the spine, and the
IPD) System, a FDA-approved interspinous process device for treating lumbar spinal stenosis (LSS). The total estimated purchase price, excluding transaction costs, of up to $725,000,000 was comprised of $525,000,000 in cash upon closing, plus additional revenue-based contingent payments of up to $200,000,000 payable in either cash or a combination of cash and stock, at the Companys election. The payments are contingent upon the attainment of certain revenue thresholds during specified periods through June 2008. This additional amount represents contingent consideration for accounting purposes and has not been included in the purchase price equation set out below. This amount will be recognized as additional purchase price consideration when such contingency has been resolved. The Company financed the transaction through a combination of cash on hand and bank financing (see Note 6).
The total estimated initial purchase price of St. Francis is as follows (in thousands):