Medtronic has acquired CardioInsight Technologies, developer of the ECVUE system. CardioInsight will now become part of the Medtronic Atrial Fibrillation Solutions business in the Cardiac Rhythm and Heart Failure division.
Medtronic completed its acquisition of CardioInsight on a debt-free basis in a transaction valued at approximately US$93m, net of CardioInsight’s cash of US$7m, plus performance-based contingent consideration that may be paid post-closing. Consideration consisted of an initial cash payment of US$75m and retirement of a Medtronic loan outstanding to CardioInsight in the amount of US$25m. Additional terms of the deal were not disclosed.
“CardioInsight will broaden and enhance the existing AF Solutions programme at Medtronic, and will provide meaningful clinical and economic solutions for patients, hospitals, physicians and payers,” said Reggie Groves, vice president and general manager of the AF Solutions business.
The CardioInsight ECVUE system is designed to non-invasively generate images of the electrical activity of the heart by combining body surface electrical data with 3D anatomical data. The system then reconstructs and displays 3D maps and other useful measures of cardiac electrical activity. The ECVUE system has been used with more than 1,400 patients in Europe and the USA, and has also been featured in more than 120 peer reviewed journals and presentations.
Medtronic will include revenue from the CardioInsight product line as part of the Cardiac Rhythm and Heart Failure division within the Cardiac and Vascular Group. The transaction is expected to meet Medtronic’s long-term financial metrics for acquisitions, and the annualised earnings impact of this acquisition is not expected to be material.