LOS ANGELES—Fresenius has agreed to purchase Xcorporeal Inc., which is developing a wearable artificial kidney, for $8 million.

Xcorporeal is a medical device company developing an extra-corporeal platform technology to be used in devices to replace the function of various human organs. The platform includes three initial products: a Portable Artificial Kidney (PAK) for hospital-based renal replacement therapy, the XCR-6 for home hemodialysis, and a Wearable Artificial Kidney (WAK) for continuous ambulatory hemodialysis.

Fresenius USA Inc., a subsidiary of Fresenius Medical Care Holdings Inc., will acquire substantially all of Xcorporeal’s assets for $ 8 million in cash in addition to “certain additional royalty payment rights,” according to Xcorporeal.

The closing is scheduled to occur on or before Feb. 28, 2010, and the purchase will be made in three installments, according to Xcorporeal.

Xcorporeal’s  board of directors has unanimously approved the sale, but the deal must still be appro

ved by a majority of each of its stockholders.

We are very pleased to announce this transaction with Fresenius,” said Kelly McCrann, Chairman & CEO of Xcorporeal. “We believe that Fresenius is the best possible partner for our innovative dialysis technology and this transaction represents the best approach to maximizing shareholder value. This announcement follows an extensive review of a range of strategic alternatives for the company, including our continuing as an independent entity, exploring mergers and acquisitions, as well as numerous financing alternatives.”