On Tuesday, Medtronic announced intent to acquire CathWorks, an Israel-based medical technology company, for $585 million. CathWorks has its U.S. headquarters in California and specializes in improving coronary artery disease detection and treatment. 

Medtronic expects the purchase to improve care at catheterization labs, according to Jason Weidman, senior vice president of Medtronic and president of the company’s coronary and renal denervation business. “This acquisition allows Medtronic to transform the cath lab with a technology that provides real-time data, informs individualized treatment approaches, and drives new standards of care,” he said in a press release.

The purchase is a follow-up to a strategic partnership between Medtronic and CathWorks that started in 2022. 

Medtronic, operationally based in Minneapolis, says the acquisition is set to “transform how coronary artery disease is diagnosed and treated.” Traditionally, this has been achieved through fractional flow reserve (FFR), a wire-based diagnostic tool which is “underutilized,” the release states, because of its invasive nature.

Related: Medtronic Reports Strong Second Quarter 

For about three years, Medtronic has co-promoted CathWorks’ FFRangio System, which uses AI and computational science to assess coronary arteries through X-rays, minimizing the risk of radiation and eliminating the need for pressure wires and drug stimulants, per the CathWorks website.

“Through our co-promotion agreement, we’ve seen how CathWorks can disrupt the traditional wire-based FFR segment and leverage the power of data and AI to deliver innovative solutions that assist physicians at every step of a patient’s journey, from diagnosis to treatment,” Weidman said.

Ramin Mousavi, president and CEO of CathWorks, noted the co-promotion “has unlocked significant opportunities in the coronary physiology market,” adding that, with Medtronic’s global footprint, “FFRangio will continue to reach even more patients globally.” 

Medtronic and CathWorks intend to carry on operating independently until the end of fiscal year 2026, when the deal is set to go through, pending clearance from the Federal Trade Commission.

In Medtronic’s last quarterly report, released November, the company reported a 5.5% organic increase in revenue year-over-year, with growth from its cardiovascular division—a 9.3% rise, to $3.4 billion—the best Medtronic has seen in more than a decade.