Medtronic | Sabin Piso

Medtronic announced that it has acquired CardioInsight Technologies, Inc., a privately-held, medical device company based in Cleveland that has developed a unique strategy to improve the mapping of electrical disorders of the heart. CardioInsight will now become a part of the Medtronic Atrial Fibrillation Solutions business in the Cardiac Rhythm and Heart Failure division.

Medtronic has finished its acquisition of CardioInsight on a debt-free basis in a transaction worth approximately $93 million, net of CardioInsight’s cash of $7 million, plus performance-based contingent consideration completed post-closing. The transaction includes an initial cash payment of $75 million and retirement of a Medtronic loan outstanding to CardioInsight in the amount of $25 million. Other details about the acquisition were not disclosed

Reggie Groves, vice president and general manager of the AF Solutions business, mentioned in a statement: “This investment aligns with our goal to deliver breakthrough technologies for patients who have atrial fibrillation and other arrhythmias.” He said “CardioInsight will broaden and enhance the existing AF Solutions program at Medtronic, and will provide meaningful clinical and economic solutions for patients, hospitals, physicians and payers.”

The CardioInsight ECVUE(TM) system is the company’s latest technology that non-invasively generates images of the electrical activity of the heart through the use of body surface electrical data with 3-dimensional (3-D) anatomical data. The 3-D maps gathered are reconstructed along with other useful measures of cardiac electrical activity. The ECVUE system has been used with more than 1,400 patients in Europe and the U.S. It has been widely acclaimed and in fact it was also featured in more than 120 peer reviewed journals and presentations.

Medtronic will include revenue from the CardioInsight product line as part of the Cardiac Rhythm and Heart Failure division within the Cardiac and Vascular Group. This acquisition is deemed to meet Medtronic’s long-term financial metrics, and the annualized earnings impact of this acquisition is not expected to be material. Along with leading clinicians, researchers and scientists worldwide, Medtronic offers the broadest range of innovative medical technology for the treatment of cardiovascular disease and cardiac arrhythmias.

About Medtronic

Medtronic plc is an Irish company with its principal executive office located in Ireland and its operational headquarters is in suburban Minneapolis, Minnesota. It is the world’s third largest medical device company. In 2015, at the time of its acquisition of Covidien, Medtronic’s market cap was about $100 billion while the market cap for CRH, Ireland’s largest indigenous business, was $18.4 billion. Medtronic operates in more than 140 countries. The company employs more than 85,000 people and has more than 53,000 patents

Medtronic was founded in 1949 in northeast Minneapolis by Earl Bakken and his brother-in-law Palmer Hermundslie as a medical equipment repair shop. They originally planned on selling basketball pumps due to a shortage in the Midwest in the 20th century. In June 2014, Medtronic announced its acquisition of Covidien, PLC of Ireland for $42.9 billion. Following the acquisition, Medtronic ceased to be a Minnesota-based company, officially renamed Medtronic PLC and headquartered in low-tax Ireland. Medtronic stock market evolution http://www.marketwatch.com/investing/stock/mdt.

About CardioInsight

CardioInsight is a Cleveland, Ohio based medical device company that has developed a non-invasive advanced cardiac mapping technology to map electrical disorders of the heart. The technology uses body surface electrical data with heart and torso anatomy to provide single beat epicardial 3D electroanatomic maps of the heart. The technology was initially developed by Yoram Rudy, Ph.D. while he was Director of Cardiac Bioelectricity Research at Case Western Reserve University in Cleveland, Ohio. CardioInsight ECVUE™ system is the first, non-invasive mapping system to provide simultaneous, 3D, multi-chamber mapping and localization of cardiac arrhythmia mechanisms. It uses a proprietary, single-use, disposable multi-sensor “vest” to capture electrical signals from the body surface, and sophisticated software to compute and visualize epicardial 3D electroanatomic maps and virtual electrograms from the heart. This system is the first advanced mapping technology to non-invasively generate 3D electrical maps of the heart in a single beat, thus providing the unique opportunity to enable advanced cardiac mapping.

About Reggie Groves

Reggie Groves is the Vice President and General Manager at Medtronic. Through Mr. Groves, Medtronic has expanded global entry plans for the Launch/re-launch products in over 97 countries globally, including engaging key industry thought leaders, working with the government to avoid a local clinical trial, and designing a go-to-market plan which resulted in exceeding plan performance. Prior to being the VP and GM, Mr. Groves was the Vice President for Quality and Regulatory and Vice President and General Manager for Patient Management. Before he worked for Medtronics, he was Global Managing Partner for Scient, Inc. Mr. Groves earned his Master of Business Administration at Harvard Business School and Bachelor’s degree, Pharmacy at the University of Florida.

Medtronic, Inc. expands medical services to treat more patients with Covidien Plc acquisition.

Medtronic, Inc. is a global leader in medical technology, medical services and solutions for various medical concerns. Today, the company announced its intention to use approximately $16 billion in external financing to acquire Covidien plc. Medtronic plans to fund its acquisition by using cash from its foreign subsidiaries which was previously planned. There will be no changes in the terms and conditions of the definitive agreement reached between the two companies that were created in June this year.

To fund the cash portion of the transaction, Medtronic intends to use new financing strategies that will be in place by closing of the transaction. Upon completion of the transaction, each outstanding ordinary share of Covidien will be converted into the right to receive $35.19 in cash and 0.956 of an ordinary share of Medtronic plc, the parent company of the new combined entity. This agreement was already in place when the two companies signed a definitive agreement in June of this year.

Omar Ishrak, Chairman and CEO of Medtronic mentioned in an exclusive interview “This proposed acquisition was conceived and undertaken for strategic reasons and is intended to create a company that can treat more patients, in more ways and in more places around the world.” Mr. Ishrak continued “We believe our combination will be uniquely positioned to help advance the goals of the Affordable Care Act in the U.S. as well as the objectives of virtually all health systems – to drive access to high-quality, affordable health care for patients around the world. Since the announcement of this transaction, we have worked closely with our Covidien colleagues to plan for the integration of these two leading companies, and we look forward to closing the transaction and realizing these strategic benefits.”

The new financing will incur new expenses for Medtronic however the benefits of the transaction remain compelling. The transaction is still expected to be accretive to Medtronic`s cash earnings in FY2016, the first full fiscal year, and significantly accretive thereafter. The acquisition is also expected to be neutral to GAAP earnings by FY2019 and accretive thereafter. The announcement of this acquisition today has no effect on the revenue outlook and earnings per share guidance. Medtronic expects the transaction to close in late 2014 or early 2015.

As stated in the June 15 transaction agreement, a new Irish holding company – Medtronic plc – will become the parent company of the new combined entity and will be included on the NYSE. The company will maintain principal executive offices in Ireland and will continue to have operational headquarters in Minnesota.

A.L. Mijares

About Medtronic, Inc.

Medtronic, Inc. has headquarters in suburban Minneapolis. It is the world’s fourth largest medical device company and is included in the Fortune 500. Medtronic operates in more than 140 countries. The company employs 49,000 people, including 5,800 scientists and engineers, pursuing research and innovation that has led to more than 28,000 patents. There are six main business units of Medtronic which develop and manufacture devices and therapies to treat more than 30 chronic diseases, including heart failure, Parkinson’s disease, urinary incontinence, Down’s syndrome, obesity, chronic pain, spinal disorders, and diabetes

The company remains focused on the mission originally written by co-founder Earl Bakken in the early-1960s. The first sentence of the six-paragraph mission statement reads: “To contribute to human welfare by application of biomedical engineering in the research, design, manufacture, and sale of instruments or appliances that alleviate pain, restore health, and extend life.” Medtronic, Inc. stock market evolution:

http://finance.yahoo.com/q?s=MDT

About Omar Ishrak

Mr. Omar S. Ishrak has been the Chief Executive Officer and Chairman of Medtronic, Inc. since June 13, 2011. He is a Member of the Blood Center of Wisconsin. He is also on the Health Leadership Council of the Save the Children Foundation. Mr. Ishrak earned a Bachelor of Science and a PhD in Electrical Engineering from the University of London, King’s College.

About Covidien

Covidien Public Limited Company is an Irish-headquartered global healthcare products company. It manufactures medical devices and supplies. The company became an independent publicly traded company after being spun off from Tyco International in 2007. In 2011, Jose E. Almeida became the President and CEO of Covidien. In 2011, Covidien had more than 41,000 employees in 59 countries and its products are sold in more than 140 countries worldwide

In 2012, Covidien acquired three medical device companies in Israel: superDimension, a pulmonary endoscope developer was acquired for $350 million, ^Oridion Systems Ltd., capnography respiratory monitors and modules manufacturer was acquired for $346 million and PolyTouch, a developer of hernia mesh placement technologies was acquired for $30-40 million. In June 2014, Medtronic agreed to buy Covidien for $42.9 billion. Covidien stock market evolution:

http://finance.yahoo.com/q?s=COV

Medtronic Acquires CardioInsight Technologies, Inc. to Become Part of Medtronic Atrial Fibrillation Solutions

Medtronic, Inc. Announced Acquisition Plans for Covidien Plc