Medtronic, Inc., said Thursday that it will spend $585 million to buy two surgical technology companies, both of which it already has a minority stake in.
The medical device manufacturer announced that it has entered into definitive agreements to acquire Palo Alto, California-based Peak Surgical, Inc., and Portsmouth, New Hampshire-based Salient Surgical Technologies.
The company said in separate news releases that both acquisitions are subject to governmental and regulatory review in the United States and several other countries.
Medtronic will spend $480 million to purchase Salient Surgical Technologies and $105 million to purchase Peak Surgical. The total value of the two acquisitions, including Medtronic's previous investments in the companies, is $645 million.
Peak Surgical was founded in 2005 and specializes in disposable surgical instruments that use its proprietary PlasmaBlade technology, which is cleared for use in a variety of settings, including ear, nose, and throat (ENT); plastic reconstructive; orthopedic; and general surgical applications. Medtronic said in a press release that Peak Surgical's annual sales total about $20 million.
Salient Surgical Technologies-which was founded in 1999-specializes in the haemostatic sealing of soft tissue and bone in a variety of surgical procedures, including orthopedic, spine, open abdominal, and thoracic. Its annual sales total about $100 million, according to Medtronic.
"These acquisitions represent Medtronic's commitment to innovation across the entire surgical continuum from incision to closing, and represent entries into new areas such as plastic/reconstruction, electrophysiology, oncology, and large-bone orthopedics," Medtronic said in a statement.
Medtronic spokesman Steve Cragle told Twin Cities Business that the two companies will continue to operate separately until the acquisitions close, at which time they will be integrated into Medtronic's surgical technologies division. Cragle said that Peak Surgical has about 50 employees and Salient Surgical Technologies has about 330 employees, adding that it is too early to comment on whether all employees will be retained. Medtronic will evaluate staffing levels following the close of the acquisitions, which are expected to occur later this summer, he said.
Fridley-based Medtronic is the world's largest medical device company and Minnesota's seventh-largest public company based on revenue, which totaled $15.93 billion in its most recent fiscal year.