A Medical Device Daily
Medtronic (Minneapolis) reported that it will acquire Restore Medical (St. Paul, Minnesota), a maker of devices to treat sleep-disordered breathing for about $29 million in cash, or $1.60 per share.
The transaction, which is anticipated to close within 90 days, is expected to be accretive to Medtronic earnings in the first full fiscal year after closing.
Restore's Pillar Palatal Implant System is a minimally invasive, implantable device used to treat the soft palate component of sleep breathing disorders, including mild to moderate obstructive sleep apnea (OSA) and snoring.
Medtronic said the FDA cleared Pillar System complements its existing family of ENT products used to treat a variety of other upper airway obstructions, including the sinuses and tonsils/adenoids.
"This acquisition will help deliver new growth for our ENT business by providing Medtronic with a proven office-based procedure in a very fast growing segment of the sleep market," said Bob Blankemeyer, president of the ENT business at Medtronic. "Medtronic can quickly leverage its distribution and marketing strengths to improve patient and surgeon access to this minimally invasive therapy."
"Minimally invasive, office-based procedures to treat snoring and sleep apnea is a large and underserved market," said Bob Paulson, president/CEO of Restore. "The combination of our implant technology with Medtronic's ENT business will enhance access to the Pillar System," he added.
The Pillar system is sold throughout the U.S. and Canada, and in various countries in Asia Pacific, Europe, South America and the Middle East.
HealthTronics (Austin, Texas), a provider of urology services and products, reported that it has completed its previously disclosed acquisition of Advanced Medical Partners (AMP; Columbia, South Carolina) (Medical Device Daily, March 21, 2008).
While specific terms of the deal were not disclosed, the company said the consideration for the acquisition of AMP included both cash and stock that was paid at closing, as well as a potential earn out. The earn out is related to the performance of one of AMP's newly acquired entities and to certain circumstances that create the potential to acquire additional partnership interest from the AMP physician partners.
Founded in 2003, AMP is a provider of urological cryosurgery services in the U.S.
In other dealmaking news:
• LifeSync, a wholly owned subsidiary of GMP (both Fort Lauderdale, Florida) reported it has entered into a non-exclusive sublicense with Triage Wireless (San Diego) for LifeSync's patent portfolio associated with the digital, wireless communication of patient vital signs.
This sublicense will allow Triage the right to utilize LifeSync's technologies in connection with patient-worn multi-parameter monitors and associated bedside or mobile displays.
LifeSync has developed and commercialized a wireless ECG data communication system for use in medical facilities under an exclusive license agreement from Motorola (Schaumburg, Illinois).
LifeSync said it intends to grant sublicenses for this intellectual property to third parties for other uses that it does not intend to internally develop and commercialize.
• Medical Properties Trust (MPT; Birmingham, Alabama) reported that it has completed the acquisition of ten additional properties for about $168 million as part of the previously reported healthcare facility portfolio the company is purchasing from HCP (Long Beach, California) (MDD, April 4, 2008).
The facilities that Medical Properties Trust acquired are: Wesley Rehabilitation Hospital (Wichita, Kansas); Sunrise Rehabilitation Hospital (Fort Lauderdale, Florida); Pioneer Valley Hospital (West Valley City, Utah); Poplar Bluff Regional Medical Center (Poplar Bluff, Missouri); and six wellness centers located in Connecticut, Massachusetts and Rhode Island.
Subject to customary closing conditions and expiration or waiver by certain tenants of preemptive purchase rights, the company expects to complete the acquisition of substantially all of the remainder of the properties in the portfolio in 2Q08 for an aggregate additional purchase price of about $51.4 million.
MPT is a self-advised real estate investment trust formed to acquire and develop net-leased healthcare facilities.