Haemonetics acquires Silicon Valley medical-device firm for $475m

Health care company Haemonetics Corp. said Wednesday it has agreed to acquire a California-based medical-device company for $475 million in cash upfront.

Boston-based Haemonetics, which focuses on equipment, software, and services around blood management, will acquire Cardiva Medical, a privately held firm in Silicon Valley that makes devices to seal arteries and veins.

The merger, expected to close in the first quarter of the year, could add about $65 million to $75 million in revenue for Haemonetics in the first fiscal year. The deal is valued at up to $510 million based on sales growth considerations.

“We are excited to add Cardiva’s vascular closure technology to our portfolio and look forward to welcoming their talented team, said Chris Simon, chief executive of Haemonetics. He added that the deal “immediately expands and diversifies [Haemonetics’] hospital offerings.”

To finance the acquisition, the company said it will use a combination of cash, credit, and a $150 million term loan. Haemonetics used to be headquartered along Interstate 93 in Braintree, but in 2019 it made a move to a 62,000 square-foot space on Summer St. in Boston.

Haemonetics employs about 225 workers in Massachusetts and about 3,000 globally.- Boston Globe