Medtronic to Buy Privately Held Twelve Inc.
August 25 2015 - 10:18AM
Dow Jones News
By Ezequiel Minaya Medtronic PLC said Tuesday it has agreed to acquire Twelve Inc., a
company that develops valve replacement devices, for $458
million.
Redwood City, Calif.-based Twelve is focused on developing a
transcatheter mitral valve replacement device, an area Medtronic
hopes will be a source of growth.
"We have followed the transcatheter mitral valve space closely
and firmly believe that Twelve has the most novel technology along
with a strong, proven team," said Sean Salmon, a senior vice
president at Medtronic and head of its coronary and structural
heart division.
The transaction, expected to close in October, is for $408
million at closing and a $50 million milestone payment.
The Ireland-based Medtronic expects the deal to be earnings
neutral as the company intends to offset the dilutive impact of the
transaction. Twelve will join Medtronic's coronary and structural
heart division within the cardiac and vascular group.
Medtronic relocated to Dublin earlier this year as part of a
wave of similar moves aimed at taking advantage of lower
corporate-tax rates overseas.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 25, 2015 10:03 ET (14:03 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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