Irvine Firms Radiance, Endologix Will Merge

Medical products maker Radiance Medical Systems Inc. said Monday that it has agreed to merge with privately held Endologix Inc., a maker of minimally invasive treatments for vascular diseases, for about $8.4 million in cash and stock.

The companies, both based in Irvine, said Radiance will pay 75 cents in cash and one share of its stock for each of the 11.1 million Endologix shares it doesn’t already own. Radiance holds a 4% stake in Endologix.

The merged company will take the Endologix name and will be run by Franklin D. Brown, who took over a year ago as chairman and chief executive at Endologix. Jeff Thiel, president and chief executive of money-losing Radiance, will be a director of the merged entity.

Under the deal, Radiance also would pay up to 50 cents a share in cash or stock, a total of $5.6 million, if Endologix gets regulatory approval by specified dates for its minimally invasive stent technology. Radiance stock has dropped 75% in the past year to close at $1.70 a share Monday, down 3 cents on Nasdaq.

The merger is subject to shareholder approval.

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James S. Granelli