said Monday that it will acquire Kerberos Proximal Solutions, a privately held company that makes a medical device to remove blood clots from closed arteries, for roughly $32 million.
Kerberos' thrombectomy device should complement FoxHollow's existing product offerings, which are designed to remove plaque from clogged arteries, the company said in a statement. Under the merger agreement, $13 million of the $32 million total will be paid in stock.
"We believe the Kerberos thrombectomy system is a great first addition to FoxHollow's product portfolio. ... The product is easy for physicians to use and will nicely overlap our existing customer base," said John B. Simpson, FoxHollow's founder and chief executive, in a statement. The Kerberos system has been approved by the Food and Drug Administration.
Thrombus, or blood clot, is a common problem in many patients with coronary artery disease and peripheral artery disease.
FoxHollow expects to close the deal by the end of the third quarter. The company says it will have minimal impact on its third- and fourth-quarter revenue, but the acquisition is expected to reduce this year's earnings by 8 cents to 10 cents a share, excluding one-time charges.
FoxHollow shares were down nearly 2% following the announcement.