It seems that in March 2004, Zoll entered into a license agreement with Lifecor,
where they acquired exclusive distribution rights
to Lifecor's technology for the hospital market, and acquired an option to
purchase the remainder of Lifecor's assets. Well, they excercised that option today. You can read an earlier post about Lifecore's product here (press release).
2006, ZOLL will acquire Lifecor's assets and business. ZOLL will also
assume Lifecor's outstanding debt of approximately $5.8 million (plus
an additional $3.0 million owed to ZOLL), and certain stated
liabilities of approximately $1.3 million. Additional consideration
will be in the form of earn-out payments to Lifecor based upon future
revenue growth of the acquired business over a five-year period.
You can read the 8K filing here.
commented that “There have been a number of favorable developments with
respect to the business of Lifecor since ZOLL acquired the option to
purchase the business in March 2004, including good revenue growth,
greater reimbursement coverage, and the achievement of break-even
operating results. ZOLL's exercise of the option allows us to acquire a
business that fits well with our core technology, and offers
significant opportunity for profitable growth.”