Ireland-based medical device company Medtronic has entered into an agreement to acquire medical-technology company HeartWare for approximately $1.1bn.

Under the agreement, Medtronic will float a tender for all outstanding shares of HeartWare common stock, each of which will be valued at $58 in cash, which has received a nod of approval from the board of directors of both of the companies.

Subject to the customary closing conditions, the transaction is expected to be completed at the end of this year.

"All of our stakeholders, including customers, employees, shareholders, and most importantly, patients, will benefit meaningfully from this complementary combination."

The potential acquisition is expected to boost Medtronic’s diagnostic tools portfolio, its therapies and services offered to heart failure patients.

HeartWare president and CEO Doug Godshall said: "Combining the unique capabilities of the HeartWare team, which has been entirely focused on mechanical support technologies, with the broad strength of the Medtronic organisation provides a unique opportunity to enhance growth in the mechanical circulatory support market.

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"All of our stakeholders, including customers, employees, shareholders, and most importantly, patients, will benefit meaningfully from this complementary combination."

The transaction will witness the addition of HeartWare’s HVAD System which features world’s smallest full-support ventricular assist device (VAD) and is intended to minimise surgical invasiveness while improving patient recovery times and outcomes.

The acquisition will enable Medtronic to offer a wide range of medical technology suited for interventional and surgical treatment of cardiovascular disease and cardiac arrhythmias.

The transaction will have no impact on Medtronic’s earnings per share (EPS) as the company is planning to offset the dilutive impact.

It is expected to add to the company’s revenue after two years.

During the transaction, Medtronic will be served by JP Morgan Securities as the financial advisor with Ropes & Gray acting as the legal advisor.

HeartWare will be served by Perella Weinberg Partners as the financial advisor, while Shearman & Sterling will serve as the legal advisor.