Medtronic to buy two heart-valve device makers in deals worth $645 million

08 Jul 2011

In a did to diversify its surgical range, Medtronic Inc, the world's largest independent medical products maker, today said that it will acquire two heart-valve device makers in deals totalling around $645 million.

Medtronic said in a statement that it would buy the remaining shares of Salient Surgical Technologies Inc, previously known as, TissueLink Medical,  that it does not already own, for about $480 million. In ther past decade, Medtronics has participated in each of Salient's seven funding rounds.

The total value of the transaction is $525 million. Medtronic said that it had previously invested in Salient and currently holds an ownership stake worth $45 million in the company.

Portsmouth, New Hampshire-based Salient came into being in August 1999, after acquiring an exclusive global license of Medtronic's "wet" electrode technology.

Salient makes devices using its patented transcollation technology that gently heat seal soft and bone tissues during surgeriesis and thus control bleeding. This technology is used in orthopaedic surgery, spine, open abdominal and thoracic surgical procedures.

According to Medtronic, Salient's revenue is annualizing at approximately $100 million and is growing rapidly.