Medtronic Buys Laser Surgery Firm For Up To $105 Million
By Jof Enriquez,
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Medtronic recently acquired Texas-based laser neurosurgery company Visualase, Inc. for up to $105 million in an all-cash transaction.
The deal involves an initial payout of $70 million and up to $35 million in potential milestone payments, according to a press release from Medtronic. As Medtronic had an ownership stake in Visualase, their upfront payment is about $64 million.
The deal will have a neutral effect to Medtronic’s 2015 fiscal year earnings, which began April 26, and will be accretive for its earnings in subsequent years, according to an article in The Star Tribune.
In its announcement, Medtronic said that the purchase will integrate Visualase’s FDA-approved, MRI-guided laser ablation system for minimally invasive brain surgeries into the company’s surgical technologies business which includes intra-operative imaging, surgical navigation, powered instruments, and cerebrospinal fluid (CSF) management. The company said it will combine the laser technology with its expanding neuroscience products.
“The Visualase laser ablation technology gives neurosurgeons a minimally invasive option to precisely target and treat small areas of tissues,” Mark Fletcher, senior vice president and president, Medtronic Surgical Technologies, said in the statement. “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.”
Medtronic said the acquisition is part of its continuing investment in leading neurosurgical technologies and shows its drive for innovation across the surgical care continuum as it tries to become the “partner of choice” for neurosurgeons and neuroscience centers globally.
“We believe the transaction with Medtronic will help us bring our minimally invasive neurosurgical technology to an even a wider group of patients. Medtronic is recognized as the industry leader in neurosurgical solutions and we are proud to join their team,” William Hoffman, CEO, Visualase, said in a separate news release.
According to Visualase’s statement, the Visualase system has been used to treat more than 800 patients “to destroy, through minute drill holes, tissue that would otherwise be removed through invasive craniotomies.”