NORCROSS,Novoste, which is redirecting its business and selling off its existing product lines of stent and catheter technology, has agreed to merge with ONI Medical Systems in a deal worth more than $20 million.

As part of the transaction, the new company will take the name ONI and will be run by ONI management, Novoste (Nasdaq: NOVT) said in a statement issued after the markets closed on Wednesday.

Novoste will issue shares worth $20 million for stock in ONI, which is privately held, and also provide a $3 million loan to ONI. ONI is based in Wilmington, MA. ONI shareholders are expected to hold the majority interest in the merged company once the deal is closed, Novoste added.

“The combination of the Novoste financial resources with the successful MRI product business of ONI is the culmination of a comprehensive effort by the board and management of Novoste to determine the best use of our assets and we believe that this transaction will create significant opportunities for the stockholders of both companies,” said Alfred Novak, president and chief executive officer of Novoste.

Novoste also said it had “received expressions of interest from several parties” to acquire its vascular brachytherapy (VBT) business.

Novoste: www.novoste.com