MDT Medtronic PLC

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 has been on an acquisition spree this year. In January, the company's shareholders approved the company's $43 billion acquisition of Ireland's Covidien PLC.

A string of smaller deals followed in June with Medtronic acquiring Aptus Endosystems Inc. for roughly $110 million and cardiac-mapping company CardioInsight Technologies Inc. in a deal valued at $93 million. Last month, the company agreed to acquire RF Surgical Systems Inc. for about $235 million.

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

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(END) Dow Jones Newswires

August 25, 2015 10:26 ET (14:26 GMT)

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