US-based MicroPort Scientific has signed a binding letter of intent (LoI) to acquire British medical technology company LivaNova’s Cardiac Rhythm Management (CRM) business franchise for $190m.
The transaction is intended to complement and improve the overall operational efficiency of research and development (R&D) for the MicroPort Sorin CRM (MSC) business in China and also aid in the development of new CRM products to treat arrhythmias in the country.
LivaNova CRM business franchise develops, manufactures and markets products such as defibrillators, cardiac resynchronisation therapy devices and pacemakers for the diagnosis, treatment and management of heart rhythm disorders and heart failures.
With primary operations in France, Italy and the Dominican Republic, the business franchise reported about $249m in net sales in the fiscal year 2016.
The acquisition is expected to enhance MicroPort’s footprint in Europe through CRM’s European Union (EU) distribution channels for products such as orthopaedic, cardiovascular, electrophysiology and neurovascular devices.
MicroPort chairman and CEO Dr Zhaohua Chang said: “The CRM business franchise is a global business and strong regional player with attractive assets, a robust pipeline and growth potential.
“Its strong position in Europe compliments our leadership position in China and growing presence in the US and emerging markets, enabling us to further strengthen each other’s worldwide reach.”
The firms intend to enter into a definitive acquisition agreement contemplated by the LoI after notification and consultation with CRM’s employee works councils.
The transaction, which is expected to close in the second quarter of next year, is subject to entry into the acquisition agreement, regulatory approvals and other customary conditions.