US-based medical device company Lombard Medical has acquired Silicon Valley based endovascular stent graft developer Altura Medical for $50.5m.

Under the agreement, Lombard will issue $15m worth of common stock at $4 per share to Altura, apart from assuming $5.5m in bank debt and $2.5m in certain liabilities and transaction related costs.

Altura will also receive $27.5m based on the achievement of certain commercial and regulatory milestones that are expected in the next five years.

The agreement also provides Lombard with an option to pay the additional consideration in either cash or stock.

"We believe this innovative technology could account for up to 20% of our 2016 total revenue."

Lombard Medical CEO Simon Hubbert said: "The acquisition of Altura and the launch of its new AAA stent graft will provide a near-term and substantial increase in revenues.

"In fact, we believe this innovative technology could account for up to 20% of our 2016 total revenue."

Altura developed an ultra-low profile endovascular stent graft technology that provides a simple and predictable solution to treat abdominal aortic aneurysm (AAA) anatomies.

University Hospital Leipzig, Interventional Angiology Division chairman Dierk Scheinert said: "The added benefits of this smart system are the ability to reposition during deployment and place each graft accurately to each renal artery enabling physicians to utilise all the available aortic neck.

"It also removes the need for cannulation and therefore provides a simple, intuitive, safe and consistent deployment system with predictable and shorter procedure times."

The Altura endograft system obtained CE Mark approval this year and plans to introduce the device in Europe in early 2016, followed by a broader international roll out later in the same year.

Lombard plans to file for an investigational device exemption from US Food and Drug Administration early next year with the intent to start recruitment for a US clinical study later this year.