AtriCure has agreed to acquire US-based medical device company SentreHEART in a deal valued at around $300m (£248m)
The deal includes an upfront payment of around $40m (33.1m) in cash and AtriCure common stock, as well as an additional contingent consideration based on the achievement of certain clinical and reimbursement milestones in the coming several years.
Based on milestones related to the aMAZE IDE clinical trial, including PMA approval, a contingent payment of around $140m (£116m) will be made, while about $120m (£99.4m) will be based on a milestone related to reimbursement for the therapy involving SentreHEART devices.
AtriCure will pay all contingent consideration in a combination of cash and stock.
SentreHEART, a provider of left atrial appendage management solutions
Based in the Redwood City of California, SentreHEART is involved in the development of percutaneous left atrial appendage (LAA) management solutions.
Established in 2005, the company has developed advanced technology for remote delivery of suture for closure of anatomic structures, including the LAA.
At present, the company is sponsoring the FDA-approved prospective, multi-centre, randomised controlled aMAZE trial.
The aMAZE trial is assessing the Lariat suture delivery device for LAA closure adjunctive to pulmonary vein isolation (PVI) catheter ablation to treat persistent and longstanding persistent Afib.
SentreHEART is carrying out the study to show that the Lariat device for LAA closure, in combination with PVI ablation, will result in a reduced incidence of recurrent Afib compared against PVI alone.
The company will recruit up to 600 total patients at 65 sites with a one-year follow up and 535 patients have been enrolled to date in the trial. Its primary endpoint measures are freedom from episodes of Afib greater than 30 seconds at one-year post treatment.
Subject to customary closing conditions, the deal is expected to be completed in the next several days.
AtriCure president and CEO Michael Carrel 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.” – NS Medical Devices