St. Jude Merges into Neuromodulation Market 3955

Originally Published MX January/February 2006

BUSINESS NEWS

In a $1.3 billion deal, St. Jude Medical Inc. (St. Paul, MN) has acquired Advanced Neuromodulation Systems Inc. (ANS; Plano, TX). Now a new division of St. Jude, ANS is a leader in the neuromodulation device market and reportedly holds the number-two market spot in the spinal cord stimulation segment.

"This is a compelling strategic opportunity for St. Jude Medical and is consistent with our efforts to create additional long-term growth drivers that diversify our business mix and deliver value to our shareholders," says Daniel J. Starks, St. Jude Medical chairman, president, and CEO.

In light of the added revenue from the ANS division, St. Jude now expects revenue growth of greater than 20% in 2006.

Chris Chavez, president and CEO of ANS, hails the merger as a transaction that will strengthen his company's competitive position on a global basis. Chavez and the executive management team of ANS are expected to remain with the company, which will continue to be headquartered in Plano, TX. Chavez will serve as president of the ANS division.