Dive Brief:
- Medtronic said Monday it has closed the acquisition of CathWorks, a deal worth $585 million with potential undisclosed earn-out payments.
- The transaction, agreed to in February, continues a strategy of increasing acquisitions to strengthen the company’s leadership in its core businesses, Medtronic said.
- CathWorks’ FFRangio system uses artificial intelligence and computational science to assess the entire coronary tree from routine angiograms that image the blood vessels.
Dive Insight:
Medtronic is stepping up the pace of M&A to accelerate growth in its key businesses, including cardiovascular and neuroscience, and supplement its research and development efforts.
CEO Geoff Martha told investors at the J.P. Morgan Healthcare Conference in January that the company was going on the offense to prioritize investment in tuck-in acquisitions in high-growth areas that are close to commercialization. Martha reiterated the commitment on an earnings call in February.
A month after announcing the CathWorks deal, Medtronic said it would pay $550 million to buy Scientia Vascular, the maker of a technology to help address challenges in navigating neurovascular procedures.
Medtronic has also made a strategic investment in Anteris Technologies, agreeing in January to buy up to $90 million worth of shares in the developer of transcatheter aortic valve replacement devices.
The string of deals comes as the medtech giant completed the spinoff of its MiniMed diabetes technology business in March.
Medtronic and CathWorks partnered in 2022 to promote the FFRangio system in the U.S., Europe and Japan.
Medtronic expects the CathWorks acquisition to be immaterial to its fiscal 2027 earnings per share, then neutral to accretive after that.
