Medical technology company Haemonetics has signed an agreement to acquire US-based vascular closure manufacturer Cardiva Medical for up to $510m.

The company will acquire Cardiva for $475m upfront cash payment at closing and up to an additional $35m in contingent consideration based on sales growth.

Cardiva Medical has a portfolio of two catheter-based vascular access site closure devices, which include VASCADE and VASCADE MVP.

VASCADE vascular closure system has been designed for ‘small-bore’ femoral arterial and venous closure applications.

It is used in interventional cardiology and peripheral vascular procedures and is the only closure device that can reduce access site complications compared to manual compression.

VASCADE MVP is designed for ‘mid-bore’ multi-access femoral venous closure and is used in electrophysiology procedures.

It is the only US Food and Drug Administration (FDA)-approved closure device for use after cardiac ablation procedures, where two or more access sites within the same vessel are required.

The two devices include Cardiva’s collapsible disc technology and a resorbable collagen patch to achieve hemostasis.

Haemonetics president and CEO Chris Simon said: “We are excited to add Cardiva’s vascular closure technology to our portfolio and look forward to welcoming their talented team.

“This acquisition immediately expands and diversifies our hospital offerings in the large and growing interventional cardiology and electrophysiology markets and aligns with our innovation agenda.”

The deal is subject to customary closing conditions and is expected to be closed in the first quarter of this year.

According to Haemonetics, the deal could bring in revenues between $65-$75m in the first fiscal year. In the fifth year, it could deliver a 10% rate of return on invested capital.

Cardiva Medical president and CEO John Russell said: “We are delighted to become part of a company that shares our commitment to technology leadership and meaningfully advancing patient care in some of the most critical areas of medicine.

“We believe that Haemonetics’ history of leadership in hemostasis management makes the company an ideal partner to realise the full potential of our VASCADE platform technology.”

Last July, Cardiva Medical secured $45m in equity financing round to support the continued commercial expansion of its vascular closure systems.

The funding round was led by new investor EW Healthcare Partners. Existing investors, including affiliates of Luther King Capital Management, PTV Healthcare Capital and Evidity Health Capital, also participated in the round.