Endocare Inc., which is an Irvine, Orange County, California based medical device maker, has a buyout proposal from HealthTronics Inc. of Austin. The offer is worth 26.9 million dollars.

Endocare said in a statement that its board would review and consider the offer. The offer is 20% more than what Endocare was valued earlier.

HealthTronics excels in manufacturing urology products, including prostate cancer treatment, and is planning to buy Endocare so that it can exceed in the motto of widening its treatment offerings in the medical field.

Endocare haws developed a technique of using cryoablation-based methods, which makes use of ice as a part of all the surgeries. This ice freezes and destroys the damaged cells within the tissues and tumors.

HealthTronics Inc “believes that its proposal to purchase Endocare’s outstanding shares represents a significant premium that reflects HealthTronics’ unique ability to better leverage Endocare’s technology and assets,” said James Whittenburg, HealthTronics’ chief executive.

After implementing a small revenue hike to $7.9 million, Endocare limited its second-quarter loss to $2 million as its shares went up by 5% in the stock market at the end of Friday’s closing session. The market value of the company closed at  $26 million while the HealthTronics remained flat at its market value of $130 million.

This entry was posted on Wednesday, August 13th, 2008 at 7:14 am and is filed under Venture Capital News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.