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.
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.
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.