Medtronic announced the complete acquisition of Ardian a developer of catheter-based therapies to treat hypertension and related conditions.
Under the terms of the agreement announced on 22 November 2010, the purchase price is US$800 million in cash up front, plus additional cash payments equal to annual revenue growth through the end of Medtronic’s fiscal year 2015.
Medtronic held an 11.3% ownership in Ardian, prior to completion of the acquisition, and expects to recognise gain on its ownership stake of approximately US$80 million, which will be partially off-set by one time transaction and acquisition costs in fiscal year 2011.
Acquiring Ardian offers Medtronic the opportunity to lead the development of renal denervation for the treatment of uncontrolled hypertension. The Symplicity catheter system, Ardian’s CE marked flagship product addresses this anomaly through renal denervation, or ablation of the nerves lining the renal arteries.
Ardian’s acquisition augments Medtronic’s existing interventional therapies and complements the company’s expertise in catheter design and ablation technologies.