While exact details of the deal were not available, sources close to the company said, Guidant will pay a cash sum contingent on sales of the FX miniRAIL. The deal is expected to be in the $140-200 million range.
X-Technologies products will be marketed by Guidant's European distributors. After receiving approval from the U.S. Food and Drug Administration, Guidant will begin marketing them in its primary market - the U.S. Ultimately, the level of sales will determine the size of the deal.
X-Technologies, founded in 1999, has raised $12 million in financing to date. It has recorded initial product sales in Europe.
Company founders and employees hold an estimated 25% stake in the company. The remaining shares are distributed among five venture capital backers who invested in the company in November 2001 at a $35 million pre-money value. Those funds. are expected to post two to three times returns on their investment.
Medical equipment maker Guidant Corporation (NYSE:GDT), is buying the Israeli startup X-Technologies.The Israeli company has developed a pull wire for use with catheters in balloon angioplasty.