Cardiac Science to Merge With Quinton

Cardiac Science, a maker of automatic public-access defibrillators, has agreed to merge with Quinton Cardiology Systems, a Bothell, Wash.-based maker of cardiovascular monitoring products.

Cardiac Science said it will merge with Quinton and form a new holding company, called Cardiac Science Corporation, that will be owned 51 percent by Cardiac Science shareholders and 49 percent by Quinton Cardiology. The deal was unanimously approved by the boards of directors of both companies and is expected to close during the third quarter of 2005, subject to regulatory and shareholder approvals.

Cardiac Science said the deal is expected to save $10 million per year in operating expenses, eliminate $9 million in annual interest costs and save an additional $4 million annually. Upon approval by the Nasdaq, the new company will trade its stock under the symbol "DFIB."