Monday, December 4, 2006

Kyphon Buys St. Francis Medical Technologies For $525M

Sunnyvale-based Kyphon announced this morning that it is in a definitive agreement to buy St. Francis Medical Technologies. St. Francis is a manufacturer of medical devices for trating spinal conditions. The deal is worth $500M in cash plus earnout of up to $200M based on revenue, to be paid in 2008. The deal is being funded by cash plus bank financing by Kyphon. Kyphon is being advised in the deal by Banc of America Securities LLC and Latham & Watkins; St. Francis is being advised by J.P. Morgan Securities and Wilson Sonsini Goodrich & Rosati.