Medtronic Expands Cardiac Ablation Portfolio with Acquisition of Affera

In a deal valued at $925 million, cardiac arrhythmia-focused medical technology company Affera is set to be acquired by Medtronic. Although Medtronic did not make terms of the agreement immediately available, Piper Sandler analysts were able to determine the sale price, which includes a $250 million contingency contingent on Affera obtaining approval. of the FDA for its nascent technology. The deal is expected to close around the first half of Medtronic’s 2023 fiscal year.

Thanks to an investment made less than a year ago, Medtronic already has a 3% stake in Affera, which produces cardiac mapping and navigation systems as well as cardiac catheter ablation technologies. Although Affera is an early-stage company and its technologies have not yet received the green light from the FDA, medical technology investors, especially those with an eye on heart health solutions, consider it like a household name at this point. The company’s $75 million Series C funding round at the end of 2021 caught the industry’s attention, particularly due to the participation of high-profile investors such as Bain Capital Life Sciences.

Piper Sandler senior analyst Matt O’Brien said, “The deal represents a pretty big splash in the fast-growing cardiac ablation market. Although the transaction will no doubt raise questions about [Medtronic’s] ongoing study with [pulsed-field ablation]he pointed out that the transaction was really designed to fill a product gap on the charting side. “Indeed, cardiovascular offerings accounted for 35.7% of Medtronic’s sales in the most recent full fiscal year. The takeover follows its 2019 acquisition of Epix Therapeutics, which makes a catheter ablation system for patients with arrhythmia.

Comments are closed.