Medtronic to acquire HeartWare for US$1.1 billion


Medtronic has entered into a definitive agreement to acquire HeartWare for approximately US$1.1 billion.

HeartWare’s flagship product, the HVAD system, features the world’s smallest full-support ventricular assist device (VAD) and is designed to reduce surgical invasiveness, improve patient recovery times and enhance patient outcomes.

In addition, HeartWare has multiple technologies in development designed to offer progressively less-invasive mechanical circulatory support options for patients with end-stage heart failure.

Mike Coyle, executive vice president and president of the Cardiac and Vascular Group at Medtronic, says, “The team at HeartWare has established excellent relationships with its hospital customers and built a strong position and reputation in the marketplace.”

Under the terms of the agreement, Medtronic will commence a tender offer for all outstanding shares of HeartWare common stock for US$58 per share, in cash. The boards of directors of both Medtronic and HeartWare have unanimously approved the transaction. The acquisition is expected to close during Medtronic’s second fiscal quarter, ending 28 October 2016, subject to the satisfaction of customary closing conditions.

Medtronic’s financial advisor for the transaction is JP Morgan Securities LLC, with Ropes & Gray LLP acting as legal advisor. HeartWare’s financial advisor is Perella Weinberg Partners LP, with Shearman & Sterling LLP acting as legal advisor.