Afib device specialist AtriCure, Inc., has entered into a definitive merger agreement with Endoscopic Technologies, Inc. d/b/a Estech (“Estech”). AtriCure will acquire Estech for a cash-free, debt-free up-front payment of approximately 2.1 million shares or $34 million of AtriCure common stock and up to $26 million in additional consideration based on the achievement of certain revenue-based milestones.
We covered Estech’s Cobra Fusion™ device back in 2012 when it gained limited FDA approval for use in temporary cardiac pacing, sensing, recording, and stimulation during the evaluation of cardiac arrhythmias during surgery when connected to a temporary external cardiac pacemaker or recording device. In Europe the rather clever system was CE mark indicated for use in ablative treatment of atrial fibrillation, the clever bit being that it did so through the epicardium, employing a sort of suction device to isolate cardiac tissue from the cooling effect of blood at the time of the treatment. Find our earlier coverage here.
“Estech is an ideal strategic fit for AtriCure, as it expands our presence and reinforces our commitment to the atrial fibrillation market. The combination of the two companies enhances AtriCure’s leadership and intellectual property position across surgical ablation and epicardial left atrial appendage (LAA) closure and accelerates the availability of broader surgical ablation offerings through the combination of Estech’s sales and marketing and R&D capabilities worldwide under the AtriCure umbrella,” said Mike Carrel, President and Chief Executive Officer of AtriCure.
Mr. Carrel continued, “This acquisition demonstrates our commitment to providing the most robust suite of products and solutions for our physician customers to treat the broadest set of patients suffering from Afib and Afib-related complications. Afib remains a large and growing market. Our ongoing investments in R&D, physician education and training, clinical science and commercial execution are major steps to capitalize on this market opportunity.”
“Estech’s innovative surgical ablation portfolio is an excellent fit into AtriCure’s market leading portfolio. Estech’s customers will be very well served by AtriCure’s strong global sales and training presence and demonstrated long-term commitment to Atrial Fibrillation and LAA management,” said John Pavlidis, President and Chief Executive officer of Estech.
Source: AtriCure, Inc., Business Wire