Cardiac Science Offers to Buy Swedish Maker of Monitors and Defibrillators

Cardiac Science Inc., seeking to expand its overseas presence, said Wednesday it offered to acquire Artema Medical AB, a Swedish maker of patient monitors and defibrillators, for $20 million in stock.

The Irvine-based manufacturer of external defibrillators said the deal would give it access to new customers in the Middle East, Europe and Asia.

Cardiac’s defibrillators, which deliver lifesaving jolts during cardiac arrests, could be attached to Artema’s 6,000 hospital-patient monitors, said Michael Gioffredi, Cardiac vice president of sales and marketing.

“This could give us new distribution channels and revenue,” he said. “We’re on the move, creating new opportunities for ourselves.”

The Artema bid marks Cardiac’s third move in six months to gain control of a company for either its technology or its markets.

Artema, based in Stockholm, posted sales of $19 million in the first nine months. Cardiac had operating losses of about $11 million on revenue of $2.75 million in the same period.

The Artema board has recommended that stockholders approve the deal, Cardiac said.

Cardiac, which has 125 employees, acquired Cadent Medical Corp. in July for $22.5 million in stock, giving the Irvine company access to Cadent’s miniaturized defibrillator technology, Gioffredi said.

Cardiac also is seeking to buy Spacelabs Medical Inc., which has about 65,000 monitors in hospitals, he said. After Spacelabs spurned an initial offer, Cardiac offered $15 a share, or $143 million, for the Redmond, Wash., company, which has yet to respond.

Dan Owczarski, an analyst at Gruntal & Co., said he thought Cardiac stood a “good chance” of acquiring the company, which is coming under increasing pressure from shareholders. Spacelabs stock has tumbled nearly 36% in the last year.

Cardiac’s acquisition strategy is perhaps the best way for a small company with limited sales and marketing resources to reach a larger market, said Keay Nakae, an analyst at Wedbush Morgan Securities in Los Angeles.

“I think it’s great that [Cardiac’s] management is out there stirring the pot,” Nakae said.

Cardiac’s shares closed unchanged at $5 Wednesday in Nasdaq trading.