Medtronic Closes $1.1B HeartWare Acquisition Earlier Than Expected
Medtronic completed its $1.1 billion acquisition of HeartWare International Inc. on Tuesday. It was the med-tech company’s largest acquisition of the year and is expected to deepen its already extensive portfolio of cardiovascular care products.
At the time of the deal’s announcement in June, Mike Coyle, president of Medtronic’s cardiac and vascular group, said the addition of HeartWare’s portfolio would help to round out its current care offerings. “This transaction,” Coyle said, “will be a further, important step toward Medtronic offering a complete suite of solutions to address patient needs across the heart failure care continuum.”
The most significant addition to Medtronic’s portfolio will be HeartWare’s flagship HVAD system. The device, which is the world’s smallest full-support ventricular assist device (VAD), is known for reducing invasiveness during heart surgery and thus improving patient outcomes and recovery times. Patients fitted with a HVAD system are typically deemed end-stage heart failure patients. Those with the heart-pumping device often receive it as a “destination therapy” until death or as bridge to heart transplant.
The global VAD market is valued at approximately $800 million, according to Medtronic.
Medtronic, which holds its U.S. operational headquarters in Fridley, originally predicted October 28 as the closing date of the deal. To purchase HeartWare, the company agreed to buy every outstanding share of HeartWare for $58 each in cash.
“This is an exciting moment, as more than 600 HeartWare employees are now part of the broader Medtronic organization,” said Doug Godshall, who spent the last decade as CEO of Farmington, Massachusetts-based HeartWare. “HeartWare has delivered incredible advancements for patients suffering from heart failure, through the commercialization of the HVAD system and pipeline development, and I am convinced that being part of Medtronic will allow us to accelerate meaningful innovations even more quickly.”
Medtronic is scheduled to announce its financial results for the first quarter of its fiscal year 2017 on Thursday.