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|Medtronic To Acquire Salient Surgical Technologies, Inc.|
Medtronic Targets Leadership Role in Advanced Energy Surgical Technologies
MINNEAPOLIS – July 7, 2011 – Medtronic, Inc. (NYSE: MDT) today announced that it has entered into a definitive agreement to acquire Salient Surgical Technologies, Inc., the leader in the advanced energy category for haemostatic sealing of soft tissue and bone in a variety of surgical procedures including orthopaedic surgery, spine, open abdominal and thoracic procedures. Salient’s AQUAMANTYS® system with patented TRANSCOLLATION® technology will broaden Medtronic Surgical Technologies’ portfolio of innovative surgical products to meet customer and patient needs worldwide.
The total value of the transaction is $525 million. Medtronic had previously invested in Salient and currently holds an ownership stake in the company. Net of this ownership stake, the transaction value is approximately $480 million. Salient's revenue is annualizing at approximately $100 million and is growing rapidly.
Salient Surgical Technologies’ rapidly expanding advanced energy product lines provide a strong value proposition to patients, surgeons, and hospitals through haemostatic sealing of soft tissue and bone, reduced blood loss and improved surgeon visualization.
The company’s patented TRANSCOLLATION® technology has enabled healthcare professionals to optimize care for more than 650,000 patients worldwide undergoing a variety of surgical procedures including orthopaedic surgery, spine, open abdominal and thoracic procedures.
“Integrating the Salient Surgical Technologies organization will bring new applications to Medtronic Surgical Technologies’ current surgical therapy areas and expand the company’s opportunities in adjacent offerings, helping Medtronic serve new customers and better meet the needs of existing ones,” said Chris O’Connell, executive vice president and president of Medtronic’s Restorative Therapies Group.
Joseph Army, president and CEO of Salient Surgical Technologies, said, “Salient’s focus on improving patient outcomes and its commitment to having the best people in the medical device industry align perfectly with Medtronic’s mission and culture. We are excited about the opportunity to become part of the global leader in medical technology and look forward to leveraging Medtronic’s worldwide presence to make TRANSCOLLATION® technology the standard of care in advanced energy across the globe.”
In a separate development today, Medtronic announced it has signed an agreement to acquire PEAK Surgical, Inc. another leader in advanced energy surgical technology, particularly in the area of advanced incision products. Together, these acquisitions represent Medtronic’s commitment to innovation across the entire surgical continuum from incision to closing, and represent entries into new areas such as plastic/reconstruction, electrophysiology, oncology and large bone orthopedics.
The acquisition is subject to governmental and regulatory review in the U.S. and several countries. Until the transaction is cleared and closed, the companies will continue to operate as separate entities.
About Salient Surgical Technologies
Medtronic Media Contacts:
Jeff Warren, Investor Relations, 763-505-2696
Steven Cragle, Public Relations