Image courtesy of CardioInsight Technologies Inc.
July 1, 2015 - Medtronic has acquired CardioInsight Technologies Inc., a Cleveland-based medical device company that has developed a new approach to improve the mapping of electrical disorders of the heart. CardioInsight will become part of the Medtronic atrial fibrillation solutions business in the cardiac rhythm and heart failure division.
Medtronic completed its acquisition of CardioInsight on a debt-free basis in a transaction valued at approximately $93 million, net of CardioInsight's cash of $7 million, plus performance-based contingent consideration that may be paid post-closing. Consideration consisted of an initial cash payment of $75 million and retirement of a Medtronic loan outstanding to CardioInsight in the amount of $25 million. Additional terms of the deal were not disclosed.
The CardioInsight ECVUE system is designed to non-invasively generate images of the electrical activity of the heart by combining body surface electrical data with 3-D anatomical data. The system then reconstructs and displays 3-D maps and other useful measures of cardiac electrical activity. The ECVUE system has been used with more than 1,400 patients in Europe and the United States, and it also has been featured in more than 120 peer reviewed journals and presentations.
Medtronic will include revenue from the CardioInsight product line as part of the cardiac rhythm and heart failure division within the cardiac and vascular group. The transaction is expected to meet Medtronic's long-term financial metrics for acquisitions, and the annualized earnings impact of this acquisition is not expected to be material.
For more information: www.medtronic.com