Medtronic (NYSE:MDT) announced Thursday that it is acquiring Salient Surgical Technologies and Peak Surgical for a cumulative $620 million.
The Minnesota maker of new innovative medical devices said that both the acquisitions will boost its surgical products portfolio. Medtronic’s surgical technologies revenue of $298 million grew 7 percent in the fourth fiscal quarter. After adjusting for the divestiture of its ophthalmic business in fiscal year 2010, the growth was 9 percent.
Previously Medtronic held a stake in Salient Surgical and net of that, the value of the transaction is $480 million (including that investment, the acquisition is worth $500 million). Salient Surgical’s energy devices help in the haemostatic sealing of soft tissue and bone in a variety of surgical procedures including orthopedic surgery, spine, open abdominal and thoracic procedures.
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The privately-held company has annualized revenue of $100 million and is based in Portsmouth, New Hampshire.
Separately, Medtronic announced that it was buying Peak Surgical for $120 million. Similar to its relationship with Salient Surgical, Medtronic held a stake in Peak Surgical. Net of that investment, the value of the transaction was $105 million.
Peak Surgical makes disposable cutting devices with insulation technology that “offers the exacting control of a scalpel and the bleeding control of traditional electrosurgery with minimal thermal tissue damage” according to the Medtronic news release. The technology is cleared for use in Ear, Nose and Throat (ENT), plastic reconstructive, orthopedic and general surgical applications.
Peak Surgical has annualized revenue of about $20 million and the company is based in Palo Alto, California.
