AtriCure acquisition of SentreHEART : Afib device manufacturer AtriCure has agreed to acquire California-based medical device company SentreHEART in a deal worth up to about $300 million.
Based in Ohio, AtriCure makes devices for the treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management. AtriCure’s Isolator Synergy Ablation System is the first and only medical device to bag approval from the US FDA for the treatment of persistent Afib.
SentreHEART, on the other hand, develops percutaneous left atrial appendage management solutions.
Founded in 2005, the medical device company based in Redwood City is currently evaluating its LARIAT Suture Delivery Device in the aMAZE Trial for left atrial appendage closure adjunctive to Pulmonary Vein Isolation (PVI) catheter ablation for the treatment of persistent and long-standing persistent Afib.
As per the terms of AtriCure acquisition of SentreHEART, the latter will receive $40 million upfront payment in cash and AtriCure common stock, plus further contingent consideration depending on the achievement of some clinical and reimbursement milestones in the next several years.
Of the contingent payment, $140 million will be based on milestones associated with the aMAZE IDE clinical trial, including PMA approval, and $120 million depending on a milestone related to reimbursement for the therapy involving SentreHEART’s devices.
All contingent consideration will be paid via a combination of cash and stock.
Commenting on AtriCure acquisition of SentreHEART, Michael Carrel – President and CEO of AtriCure, said: “We believe that SentreHEART is a strategic addition to AtriCure, significantly expanding our addressable markets with a product designed for electrophysiologists.
“With our pursuit of labeling based on the aMAZE Trial, we are deepening our commitment to provide the broadest possible offering of ablation and left atrial appendage management solutions to our customers and their patients.”
For AtriCure, Piper Jaffray & Co. is its financial advisor for the transaction, while Pepper Hamilton is its legal counsel. For SentreHEART, its financial advisor for the deal is Guggenheim Securities, while Goodwin Procter is its legal counsel.
AtriCure acquisition of SentreHEART, which is subject to customary closing conditions, is likely to be wrapped up in the next several days and would not need the approval of AtriCure’s shareholders.