Devices & Diagnostics

Medtronic to pay up to $500 million for Italy’s Invatec, affiliates

Medtronic Inc. agrees to spend up to $500 million on Italian cardiovascular device maker Invatec and a pair of its affiliates, Fogazzi and Krauth Cardiovascular.

Medtronic Inc. agreed to acquire Italian cardiovascular device maker Invatec and a pair of its affiliates for up to $500 million.

The Minneapolis-based medical device monolith said it will buy Invatec, which makes stents, angioplasty balloons and accessories, along with Fogazzi, Invatec’s corporate predecessor, and Krauth Cardiovascular, which distributes Invatec products in Germany.

Brescia, Italy-based Invatec was founded in 1996, spun out of Fogazzi, a family-owned research and development firm started by Luigi Venturelli, the father of Invatec co-founder and CEO Andrea Venturelli, according to the Invatec website. Fogazzi specialized in plastic processing and today supplies Invatec with polymers used in its products.

Medtronic said the deal calls for it to pay $350 million up front to Invatec, with milestone payments of up to $150 million.

Invatec won 510(k) clearance for its Reef HP PTA balloon catheter earlier this month, a device designed to treat peripheral arterial lesions. Medtronic said the company’s “robust” presence in the peripheral cardiovascular device space will complement its own cardiovascular business.

It’s the second layout of millions this month for Medtronic, which bought a $15 million stake in Lexington, Mass.-based GI Dynamics Jan. 7.