Johnson & Johnson (J&J) has signed a definitive agreement to acquire US-based medical technology firm Abiomed in a deal valued at nearly $16.6bn.

Under the deal terms, the company will make a $380 upfront payment for each Abiomed share and also provide up to $35 per share in cash to Abiomed shareholders on achieving certain commercial and clinical milestones.

J&J expects that the transaction will expand its MedTech Business position in the heart failure and recovery sector.

Abiomed’s Impella heart pumps technology, which is developed for severe coronary artery disease patients who need high-risk percutaneous coronary intervention, treatment of acute myocardial infarction (AMI) cardiogenic shock or right heart failure, will complement Johnson & Johnson MedTech’s (JJMT) portfolio.

The deal is also expected to expand J&J’s position as a cardiovascular innovator through the addition of a range of heart recovery technologies, research and development programmes, multiple clinical studies that aim to achieve Class I clinical guidelines for Impella, and approvals from the US Food and Drug Administration (FDA).

J&J’s footprint, capabilities in physician education and robust clinical expertise are expected to complement Abiomed’s capabilities to expedite access and adoption of technologies to more patients globally.

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J&J CEO Joaquin Duato said: “The addition of Abiomed is an important step in the execution of our strategic priorities and our vision for the new Johnson & Johnson focused on Pharmaceutical and MedTech.

“We have committed to enhancing our position in MedTech by entering high-growth segments. The addition of Abiomed provides a strategic platform to advance breakthrough treatments in cardiovascular disease and helps more patients around the world while driving value for our shareholders.”

The transaction is subject to the tender of a majority of the outstanding shares of Abiomed’s common stock, regulatory approvals and other customary closing conditions.

It is anticipated to be concluded by the end of the first quarter of next year.

Upon completion of the deal, Abiomed will be one of 12 JJMT priority platforms run as standalone businesses.