Medtronic to Buy Affera for Nearly $1B
Affera develops technology aimed at treating irregular heartbeats. Specifically, the company’s products use a process called “ablation,” which creates small scars in abnormal tissue to correct irregular heartbeats. It’s an area where Medtronic already operates, but the company said that Affera’s technology will “complement” its existing technology. “In some instances, [Affera’s] technologies will augment and support those we have in development,” a spokesperson said in an email.
In a news release announcing the acquisition, the companies didn’t disclose terms of the transaction. But, speaking at the J.P. Morgan Healthcare Conference on Monday, Medtronic CEO Geoff Martha said it’s a nearly $1 billion deal, according to medtech business publication MassDevice.
Citing analysts at Minneapolis-based investment firm Piper Sandler, the Star Tribune reported that the transaction will cost Medtronic $925 million.
“Bringing Affera into our organization, with our established footprint in the cardiac ablation space, will strengthen our ability to provide innovative therapies and enable Medtronic entry into additional [electrophysiology] technology segments, such as mapping and navigation, for the first time,” said Rebecca Seidel, president of Medtronic’s Cardiac Ablation Solutions business, in the news release.
The cardiovascular market is big business for Medtronic. In its 2021 fiscal year, the segment was responsible for more than $10.7 billion in revenue for the medical device maker. For perspective, Medtronic pulled in a total of $30.1 billion in the 2021 recent fiscal year.
The Affera acquisition isn’t expected to close until 2023, Medtronic officials said. It’s a big-ticket acquisition, but certainly not the largest within recent history. In August 2021, for example, Medtronic announced plans to acquire health care equipment company Intersect ENT for $1.1 billion.
Medtronic is technically headquartered in Dublin, Ireland, for tax purposes, but it maintains an executive office in Fridley.