Medtronic completed its acquisition of Visualase, a Houston-based company that markets and develops an MRI-guided laser and image guided system for minimally invasive neurosurgeries.
Here are five key facts about the transactions:
1. The all-cash transaction of up to $105 million includes an initial payment of $80 million and additional payments of up to $35 million based on achieving specific milestones.
2. Medtronic had previous interest in Visualase and held ownership in the company prior to the acquisition. Net of this ownership stake, the initial payment is around $64 million.
3. Medtronic expects the net impact from the transaction to be neutral to 2015 fiscal year earnings and accretive thereafter.
4. The company plans to add Visualase's MRI-guided laser ablation system to its portfolio of therapies for treating conditions within its surgical technologies business. The company will also integrate the technology into its broader neuroscience offerings.
5. Medtronic has made several key acquisitions recently, including Covidien for $42.9 billion. If the Covidien transaction is approved, Medtronic plans to move company headquarters overseas and the new, combined entity would be called Medtronic plc. The transaction is expected to close in the fourth quarter of this year or early next year.