Medtronic on Tuesday said it would buy U.S. medical device company Twelve for $458 million, to augment the Ireland medical technology company’s existing capabilities in the transcatheter mitral space.
Twelve, based in Redwood City, Calif., is focused on the development of a transcatheter mitral valve replacement device. It is used to treat mitral regurgitation, which occurs when the heart’s mitral valve fails to close normally, allowing blood to flow backward when the heart contracts.
“We have followed the transcatheter mitral valve space closely and firmly believe that Twelve has the most novel technology along with a strong, proven team,” Sean Salmon, senior vice president and president, coronary & structural heart, Medtronic, said in a press release. “The combined strengths of our organizations will significantly accelerate our ability to deliver an exciting and differentiated therapy to patients, physicians, and healthcare systems around the world.”
Medtronic will pay privately-owned Twelve $408 million at closing and $50 million on achievement of a particular milestone.
The deal is expected to close in October, and Medtronic expects the net impact from the transaction to be earnings neutral.
Medtronic has been on a buying spree this year, although the Twelve transaction is its largest in 2015. It acquired RF Surgical Systems for $235 million just last month.