Medtronic, Inc. has completed the acquisition of Visualase, Inc., a privately held developer of FDA-approved MRI-guided laser and image guided system for minimally invasive neurosurgeries, including surgical thermal ablation.
The transaction could amount to $105 million, based on an initial payment of $70 million plus additional payments of up to $35 million which are contingent upon the achievement of specific milestones. Medtronic already had a stake in Visualase which presumably amounted to $6 million, the company’s press release saying the net up front payment is $64 million.
Medtronic expects the net impact from this transaction to be neutral to fiscal year 2015 earnings and accretive thereafter, and for this transaction to be consistent with the company’s disciplined focus on long-term returns.
Medtronic will add Visualase’s MRI-guided laser ablation system to its neuro portfolio within its Surgical Technologies business and will integrate the technology into its broader neuroscience offerings.
“We are excited about this opportunity to add Visualase’s complementary technology and expertise to our neurosurgical solutions portfolio, which includes intra-operative imaging, surgical navigation, powered instruments and cerebrospinal fluid (CSF) management,” said Mark Fletcher, senior vice president and president, Medtronic Surgical Technologies. “The Visualase laser ablation technology gives neurosurgeons a minimally invasive option to precisely target and treat small areas of tissues. We are the recognized leader in high technology solutions for specialties such as neurosurgery, spinal surgery and orthopedics. This acquisition broadens our strong and growing portfolio of innovative surgical products and represents entries into new areas such as surgical thermal ablation.”
“The transaction with Medtronic is critical to ensure more patients have access to our beneficial technology,” said William Hoffman, CEO of Visualase. “We are proud of the MRI-guided laser ablation technology and other products we have developed and their impact on the well-being of patients. Medtronic is clearly committed to the area of minimally invasive neurosurgery and we look forward to working as a team to innovate in this area.”
Source: Medtronic, Inc.