More than six months after signing a definitive merger agreement, Cardiac Science Inc. (Irvine, CA) and Quinton Cardiology Systems Inc. (Bothell, WA) in early September completed the transaction to form Cardiac Science Corp. Cardiac Science manufactures automated external defibrillators (AEDs), and Quinton produces cardiovascular monitoring equipment.
Based on 2005 figures for both companies, the combined corporation anticipates annual revenues of about $160 million. Officials say they expect the company to achieve double-digit growth in 2006 and beyond.
"We believe the new company will have enhanced prospects for revenue growth based on our expanded product portfolio, stronger distribution capabilities in both the domestic and international markets, and the potential to leverage combined technological expertise and manufacturing strengths," says former Quinton CEO John R. Hinson, who will continue as president and CEO of Cardiac Science Corp.
Matysik: Staying aboard.
Michael K. Matysik, Quinton's senior vice president, CFO, and secretary, will also retain his titles with the new company.
Cohen: Bulking up.
As a result of the merger, Hinson says Cardiac Science Corp. will see cost savings of between $12 million and $14 million annually. The transaction also eliminated all Cardiac Science's previous debt. "The merger creates a significantly larger, debt-free company with excellent people, technology, and products which speak well for our future prospects," says Raymond W. Cohen, former Cardiac Science chairman and CEO. Cohen will remain with the new company as chairman of the board.