Irish medical technology firm Medtronic has signed an agreement to acquire California-based medical device company, Twelve, in a cash and debt-free transaction valued at up to $458m.
Under the agreement, Medtronic will pay $408m at closing and $50m on achievement of CE Marking for Twelve's transcatheter mitral valve replacement (TMVR) device.
Medtronic Coronary and Structural Heart president Sean Salmon said: "Upon close, this acquisition will strategically augment our existing capabilities in the transcatheter mitral space, which represents an important growth opportunity for Medtronic.
"We have followed the transcatheter mitral valve space closely and firmly believe that Twelve has the most novel technology along with a strong, proven team.
"The combined strengths of our organisations will significantly accelerate our ability to deliver an exciting and differentiated therapy to patients, physicians and healthcare systems around the world."
Currently under development, the TMVR device will be designed to treat patients with mitral valve regurgitation in whom standard restorative surgery is not recommended. The majority of such patients are said to be largely underserved with limited treatment options.
Mitral regurgitation occurs due to the failure of the heart's mitral valve to close normally, which enables blood to flow backwards when the heart contracts. Over time, the condition leads to declining heart function and heart failure.
After the completion of transaction, Medtronic will manage Twelve's product line as part of the Coronary and Structural Heart division within the Cardiac and Vascular Group. The TMVR device is yet to be authorised for sale in any country.
According to Medtronic, Twelve is the twelfth firm spun out from the medical device incubator The Foundry.
Subject to customary closing conditions, the transaction is anticipated to close in October this year.
Image: The world headquarters of Medtronic in Fridley, Minnesota, US. Photo: courtesy of Bobak Ha'Eri.