Only months after Healthtronics withdrew its offer to acquire Endocare for $2.28 per share, Endocare and privately held Galil Medical have agreed to merge. The combined company will be focused on the development of cryoablation technologies, a minimally invasive method to freeze and destroy cancerous tumors. "This combination has the potential to eliminate millions of dollars in redundant costs and we believe that annualized cost savings of over $10 million could be realized by mid-2010. We expect that this transaction will result in positive adjusted EBITDA within 18 months after the close of the transaction," said Michael Rodriguez, Endocare's CFO. Slated to close in the first quarter of 2009, the stock-for-stock merger transaction gives current Endocare stockholders 52 percent of the post-merger stock and Galil stockholders 48 percent. In the twelve months ended September 30, 2008, the combined company had pro forma revenues of $55.6 million and gross profit of $39.1 million. The merger could create significant clinical and operational advantages, especially in the realm of marketing. The company believes there is a significant opportunity in prostate cancer treatment, the most commonly diagnosed cancer among men. Endocare’s Cryocare TCAP (Targeted CryoAblation of the Prostate) uses controlled freezing to destroy cancerous cells. The procedure is minimally invasive and typically results in a shorter recovery period. It may also result in a lower incidence of incontinence.