Boston Scientific to buy Scimed
Boston Scientific Corp. said yesterday that it would buy Scimed Life Systems Inc. for about $865.8 million in stock, strengthening its line of angioplasty catheters used to treat heart disease.
The transaction, which values Scimed at about $56.78 a share, is a 17 percent premium to the company's closing stock price of $48.50 yesterday. The announcement was made after the stock market was closed.
The combined company will be one of the world's largest makers of medical devices, with revenue of more than $700 million. It will retain the name Boston Scientific and be headquartered in Natick, Mass., the companies said.
Accounting change proposed
Accounting rule makers may soon consider whether companies can add the costs of their investments in computers and computer software to the value of their assets, rather than deduct those costs from earnings, the chief accountant of the Securities and Exchange Commission said.
Walter Schuetze said yesterday that he intends to ask the Emerging Issues Task Force, an accounting standard-setting body associated with the Financial Accounting Standards Board, to add a project covering the capitalization of technological costs to its agenda.
That could mean good news for start-up companies, particularly in the computer business, who spend huge sums of money on computers but generally can't add that value to the value of their other assets.
Westinghouse gets postal contract
Westinghouse Electronic Systems received a $8.5 million award from the United States Postal Service to upgrade letter-sorting equipment.
The contract calls for the Linthicum-based division of Westinghouse Electric Corp. to upgrade equipment at nearly 100 mail facilities across the country. The contract is part of a three-phase program Westinghouse is providing for the Postal Service.
IRE in deal for sales abroad
Information Resource Engineering Inc. said yesterday that it has signed an agreement with Telindus Networks N.V. Belgium for distribution of IRE products in eight countries.
Baltimore-based IRE designs, manufactures and markets systems that use encryption technology to secure data transmissions on computer networks. Last month, the company acquired Connective Strategies Inc. of Chantilly, Va.
Southwest Airlines extends sale
Southwest Airlines Co. said yesterday that it would extend for one week its sale of at least 50 percent off travel to most cities from Baltimore. The sale on one-day advance purchase fares will run through Nov. 22.