Medtronic Acquires Dutch Co. For $200M In Cash Buy
Fridley-based medical technology giant Medtronic, Inc. announced its latest in a series of acquisitions this year with Tuesday’s $200 million cash purchase of a Dutch developer of brain-stimulation technology.
In announcing the purchase of Sapiens Steering Brain Stimulation, based in Eindhoven, The Netherlands, Medtronic said the move was an effort to bolster partnerships with neurosurgeons and neuroscience centers worldwide.
Sapiens SBS is developing a deep-brain stimulation system designed to allow more precise stimulation and may result in reduced procedure time and fewer side effects. More than 115,000 patients worldwide already receive deep-brain stimulation therapy from Medtronic, the company said. The therapy is used to treat symptoms of conditions like essential tremor or advanced Parkinson’s disease.
Dr. Lothar Krinke, vice president and general manager of Medtronic’s brain modulation business, said in a statement that the broadening of Medtronic’s neuroscience presence could one day transform how physicians treat patients with neurodegenerative diseases.
Medtronic said Eindhoven employees would remain at Sapiens SBS’ facility to continue to work on bringing to market the technology they’ve worked on since 2011. Later, Medtronic said, that location will serve as a global research and development center for Medtronic’s neuromodulation business.
The company said the transaction would not affect fiscal year 2015 earnings guidance.
One of Minnesota’s 10 largest public companies, Medtronic has been active in making acquisitions this year. Its biggest, a planned $43 billion cash-and-stock acquisition of Ireland-based Covidien, is expected to result in Medtronic relocating its legal headquarters from Fridley to Ireland. Medtronic has said that its “operational headquarters” will remain in the Twin Cities, where it employs more than 8,000 people.
Last month, Medtronic acquired Visualase, a Houston-based developer of laser systems for neurosurgeries, in a deal worth up to $105 million. And in January, Medtronic acquired Tyrx, Inc., a New Jersey-based anti-infection technology firm for an initial $160 million in cash with the potential for future performance-based payments.