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|Medtronic To Acquire PEAK Surgical, 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 PEAK Surgical, Inc., a recognized leader in the emerging field of advanced energy surgical incision technology to broaden Medtronic Surgical Technologies’ portfolio of innovative surgical products to meet customer and patient needs worldwide.
The total value of the transaction is $120 million. Medtronic had previously invested in PEAK and currently holds an ownership stake in the company. Net of this ownership stake, the transaction value is approximately $105 million. PEAK's revenue is annualizing at approximately $20 million and is growing rapidly.
PEAK Surgical, Inc. specializes in surgical instruments based on its proprietary PlasmaBlade® technology which represents an important advancement in advanced energy surgical technologies. The PEAK PlasmaBlade® consists of a family of disposable cutting devices with proprietary insulation technology that offers the exacting control of a scalpel and the bleeding control of traditional electrosurgery with minimal thermal tissue damage. PEAK’s technology is cleared for use in a variety of settings, including Ear, Nose and Throat (ENT), plastic reconstructive, orthopaedic and general surgical applications.
The addition of the PEAK PlasmaBlade® surgical solutions will help Medtronic serve doctors and patients and continue to fulfill the Medtronic mission of alleviating pain, restoring health and extending life.
“We are excited about this opportunity to bring our companies together and further broaden Medtronic Surgical Technologies’ portfolio of innovative surgical products to meet customer and patient needs worldwide,” said Chris O’Connell, executive vice president and president of Medtronic’s Restorative Therapies Group. “PEAK’s advanced energy cutting technologies complement our existing surgical product line, strengthening our core offerings and enabling us to offer surgeons and patients a full spectrum of leading products across the entire surgical continuum.”
John Tighe, president and CEO of PEAK Surgical, Inc., added, “Medtronic’s global reach will allow more patients and hospitals to benefit from the proven clinical and economic benefits associated with our PlasmaBlade® technology. We are excited to join Medtronic and by the potential to further develop our family of products in multiple surgical specialties.”
In a separate development today, Medtronic announced it has signed an agreement to acquire Salient Surgical Technologies, Inc., another leader in advanced energy surgical technology, particularly in the area of advanced haemostatic sealing 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 PEAK Surgical, Inc.
-end-Medtronic Media Contacts:
Jeff Warren, Investor Relations, 763-505-2696
Steven Cragle, Public Relations