Medtronic to buy US supplier of surgical implants HeartWare Int for $1.1 bn
28 June 2016
Medical-device maker Medtronic Plc yesterday struck a deal to buy US-based supplier of surgical implants HeartWare International Inc. for $1.1 billion, in order to add more heart-treatment products to its portfolio.
Under the terms of the deal that has agreed by the boards of both companies, Medtronic has offered to pay $58.00 per share, in cash.
The acquisition is expected to close during Medtronic's second fiscal quarter ending 28 October, subject to customary closing conditions.
Massachusetts-based HeartWare develops and manufactures miniaturised implantable heart pumps, or ventricular assist devices, to treat patients suffering from advanced heart failure.
The company has technology, operations, manufacturing and distribution centers in Miami Lakes, Florida; Arden Hills, Minnesota; and Hannover, Germany.
The acquisition of will expand Medtronic's portfolio of diagnostic tools, therapies and services for patients suffering from heart failure.
HeartWare's flagship product, the HVAD System, is the world's smallest full-support ventricular assist device (VAD) and is designed to reduce surgical invasiveness, improve patient recovery time.
In addition, HeartWare has multiple technologies in development designed to offer progressively less-invasive mechanical circulatory support options for patients with end-stage heart failure.
Medtronic estimates that the global VAD market is approximately $800 million currently and worldwide is expected to grow in the mid-to-high single digits for CY16-17, and accelerate to high-single/low-double digits beyond CY17.
"The addition of HeartWare's innovative portfolio adds to our expanding portfolio of diagnostics, therapeutics and services that address heart failure patients," said Mike Coyle, executive vice president and president of the Cardiac and Vascular Group at Medtronic.
"This transaction, once closed, will be a further, important step toward Medtronic offering a complete suite of solutions to address patient needs across the heart failure care continuum,'' he added.
"Medtronic is the worldwide leader in cardiovascular device technologies. Its expansive expertise in the development of implantable systems and battery technologies, patient monitoring, manufacturing, global regulatory policy and commercialization should help accelerate the development and introduction of our innovative pipeline products, and will expand access to our therapies and offerings to the sizeable heart failure population," said Doug Godshall, president and CEO, HeartWare.
Medtronic, the world's fourth-largest medical device company, develops and manufactures devices and therapies to treat more than 30 chronic diseases, including heart failure, Parkinson's disease, urinary incontinence, Down-Syndrome, obesity, chronic pain, spinal disorders, and diabetes.
The 65-year old company, which has a market cap of $114.8 billion, operates in more than 160 countries and employs over 85,000 people.
In late 2014, Medtronic spent $42.9 billion on acquiring Dublin-based Covidien in an inversion deal that allowed the Minneapolis-based company to move its headquarters to Dublin in order to reduce its tax burden by $850 million by the end of fiscal year 2018.