Kyphon To Buy St. Francis Medical

Kyphon Inc. (Nasdaq: KYPH) has agreed to acquire St. Francis Medical Technologies Inc., an Alameda, Calif.-based developer of motion-preserving technologies and procedures for orthopedic and neurological spine surgery. The deal includes a $525 million upfront cash payment at closing, plus the possibility of revenue-based earn-outs totaling $200 million. St. Francis had been in registration for a $86.25 million IPO, and had raised over $27 million in VC funding from firms like U.S. Venture Partners, Versant Ventures and Essex Woodlands Health Ventures.