Medical technologies firm AtriCure has signed a definitive agreement to acquire cardiac solutions developer SentreHEART for a total consideration of up to $300m.
The terms of the deal, which is subject to customary closing conditions, involves an upfront payment of around $40m in cash and AtriCure common stock.
The transaction also covers $140m contingent on milestones associated with the aMAZE investigational device exemption (IDE) clinical trial of LARIAT Suture Delivery Device, including premarket application (PMA) approval.
aMAZE is a prospective, randomised controlled, multi-centre study investigating LARIAT in combination with pulmonary vein isolation (PVI) catheter ablation for left atrial appendage (LAA) closure to treat persistent and long-standing atrial fibrillation (Afib).
SentreHEART is also eligible for $120m in a milestone linked to reimbursement for the therapy involving its devices. The contingent payments will be made in a combination of cash and stock.
AtriCure expects the acquisition to complement its existing Afib portfolio and help the company in further catering to electrophysiologists.
AtriCure president and CEO Michael Carrel said: “We are confident that SentreHEART complements our current product portfolio and intellectual property, augments our commitment to clinical science with the aMAZE Trial, and will leverage our growing commercial channel into the electrophysiology market.
“We believe that upon FDA approval, use of the LARIAT device will continue to advance AtriCure’s competitive position in the market.”
Founded in 2005, SentreHEART focuses on remote delivery of suture for closing anatomic structures, including the LAA. The company is currently sponsoring the aMAZE trial, which is expected to recruit up to 600 patients at 65 sites by early next year.
Primary endpoint of the trial is freedom from episodes of Afib greater than 30 seconds at one-year following treatment.
In its full-year 2019 guidance, AtriCure estimates minimal contribution from SentreHEART. Revenue contribution from the acquired company is expected to be nominal following the aMAZE trial and PMA approval.