Medtronic Buys Laser Systems Firm For $105M
Fridley-based Medtronic, Inc., announced Wednesday that it acquired a Houston company, which develops laser systems for neurosurgeries, in a deal worth up to $105 million.
The acquired company, Visualase, said its laser technology allows neurosurgeons a minimally invasive way to target and treat small areas of brain tissue for conditions such as tumors.
Medtronic previously invested $6 million in the Texas company and will now spend an additional $64 million as its initial payment for the acquisition—plus up to another $35 million, contingent on Visualase meeting certain guidelines.
Visualase will become part of Medtronic’s surgical technologies business.
“We are excited about this opportunity to add Visualase’s complementary technology and expertise to our neurosurgical solutions portfolio, which includes intra-operative imaging, surgical navigation, powered instruments and cerebrospinal fluid management,” Mark Fletcher, senior vice president and president of Medtronic Surgical Technologies, said in a statement. “This acquisition broadens our strong and growing portfolio of innovative surgical products and represents entries into new areas such as surgical thermal ablation.”
Medtronic said it doesn’t expect the deal to impact its 2015 fiscal earnings but will be profitable thereafter.
Medtronic recently made national headlines when it announced plans to relocate its headquarters from Fridley to Ireland as part of a $43 billion acquisition.