Medtronic Announces Two Surgical Device Acquisitions
BY SANDER DUNCAN, JULY 7, 2011
Medtronic expanded its reach in surgical devices today, agreeing to acquire the remaining stakes in two "energy surgical technology" companies. The first company is Salient Surgical Technologies, whose primary technology, TRANSCOLLATION, deploys radiofrequency energy and saline to control blood loss during joint replacement, orthopedic oncology and spinal surgery, among other applications. Excluding its current interest in the firm, Medtronic will acquire Salient for approximately $480 million; the total transaction is valued at $525 million.
Medtronic will also acquire PEAK Surgical, which manufactures a family of disposable cutting devices known as PlasmaBlade. That product features a proprietary insulation technology that enables cutting as well as offers bleeding control during surgery. PlasmaBlade is currently indicated for orthopedic, ENT, plastic reconstructive and general surgical applications. Net of Medtronic's existing stake, the deal is valued at approximately $105 million, or $120 million in total.
Salient's top line is annualizing at roughly $100 million, while PEAK expects to generate $20 million in revenue this year.
It has been a busy summer for Medtronic. This one-day burst of activity comes on the heels of Omar Ishrak commencing his tenure as Chairman and Chief Executive Officer on June 13. In the interim, Medtronic has been handling reports of its popular Infuse product causing infertility in men, which has led to further scrutiny of the product and its potential risks. The issue came to a head on June 22 when a group of Senators requested from Medtronic documentation relating to Infuse.
