Sunshine Heart acquired the Aquadex product line from an indirect subsidiary of Baxter International, a company in the hospital products and dialysis markets.

“Aquadex is an important strategic investment, which allows Sunshine Heart to strengthen our presence in the heart failure market,” said John Erb, Sunshine’s chairman and CEO.

Under the terms of the agreement, Baxter received $4 million in cash and 1 million shares of Sunshine Heart common stock.

In connection with the acquisition, the company repaid all amounts outstanding under its existing debt facility with Silicon Valley Bank and entered into a new $5 million facility to finance future working capital needs. Advances under the facility are subject to various conditions precedent, including compliance with financial covenants, which the company does not currently meet.

“This strategic acquisition will allow Sunshine Heart to further drive important advancements to heart failure treatment,” said Ben Johnson, managing director of Silicon Valley Bank. “We’re excited to provide the financing to support the company as it matures to the next phase of development.”