US-based firm CryoLife has signed a definitive agreement to purchase German vascular grafts maker Jotec for an upfront payment of $225m, subject to adjustments.

Jotec primarily focuses on the development of technologically differentiated endovascular stent grafts, and cardiac and vascular surgical grafts for aortic repair.

The acquisition is expected to allow CryoLife to offer a broad product portfolio for aortic surgery and enable the firm to compete in the growing endovascular surgical market.

CryoLife chairman, president and CEO Pat Mackin said: “We believe this acquisition will enable CryoLife to deliver sustained, high single-digit revenue growth, while also diversifying our revenues into a significantly larger addressable market.

“We expect the acquired portfolio to continue to post double-digit growth outside of the US for at least the next five years.”

“The transaction provides the firm with new product pipeline and research and development (R&D) capabilities.”

In addition to access to the $1.2bn US and $2bn global stent graft markets, the transaction provides the firm with new product pipeline and research and development (R&D) capabilities.

It is further intended to enhance CryoLife direct sales strategy in Europe and generate cross-selling opportunities between the firm’s and Jotec’s product portfolios through their existing direct sales network.

Jotec CEO Thomas Bogenschütz said: “CryoLife is ideally positioned to accelerate adoption of our products through its highly complementary and global cardiac and vascular surgery business.

“We are looking forward to working with CryoLife’s team to drive growth of our existing business, expand into new geographies, and accelerate our R&D initiatives in key markets such as the US.”

The deal is subject to customary closing conditions and is expected to complete by the end of this year.