Medtronic Gobbles Up ATS Medical As Heart Valve Device Consolidation Continues
By Adam Pick on April 30, 2010
The consolidation trend within the heart valve industry continued yesterday as ATS Medical was purchased by Medtronic in a cash deal valued at $350 million. So you know, that is a 54% premium to ATS’ market capitalization on Wednesday. As a result, ATS’s stock soared $2.59 to $4.00.
In a statement, Medtronic said that the ATS acquisition would further help its ongoing expansion of cardiac surgery devices, including heart valve treatment. This marks the third significant acquisition for Medtronic in the heart valve space during the past fourteen months. As you might recall, Medtronic purchased minimally invasive specialists CoreValve and Ventor Technologies last February for over $1 billion.
Although ATS Medical is widely known for its quiet Open Pivot mechanical heart valve replacement, it too has a stake in the minimally invasive arena with its stentless 3f Aortic Valve Bioprosthesis. We have seen this valve prominently featured following its use in robotic aortic valve replacement surgery by surgeons including Dr. Husam Balkhy. ATS also maintains a unique CryoMaze family of ablation products.
3f Aortic Valve Bioprothesis By ATS Medical
As with most transactions, this deal is dependent on the approval of ATS shareholders and regulatory agencies. Interestingly enough, both companies are based in Minneapolis. Following this announcement, it will be very interesting to see how the heart valve device industry further consolidates.
Keep on tickin!