Medtronic announced Wednesday that it plans to acquire Avenu Medical Inc., a San Juan Capistrano, Calif.-based med-tech company.
The deal is expected to close next month. Terms of the deal were not disclosed.
Founded in 2010, Avenu has raised over $31 million in venture capital, according to Crunchbase. Its most recent round of equity funding was in 2018, and was worth $12 million, according to a filing with the SEC. Avenu had a revenue of about $5 million in 2019 and has around 40 employees, a spokesperson for Medtronic said. It doesn’t expect any new jobs in Minnesota because of the deal.
Avenu creates a system known as Ellipsys, which allows patients with end-stage renal disease to being dialysis treatment without open surgery first. The Ellipsys system creates AV fistulae, otherwise known as lifelines, which are connections between veins and arteries in the arm necessary to being dialysis treatment.
The acquisition won’t have much of an effect on Medtronic’s bottom line for the first two years, but will start adding to the company’s earnings in 2023, it said. The total market for Avenu’s dialysis technology is worth over $600 million in the U.S. alone, the spokesperson said.
The acquisition is structured as a tuck-in acquisition, meaning the Avenu brand will be sunset. It’s Medtronic’s sixth such acquisition of 2020; other acquisitions Medtronic has made this year include a $154 million deal for French med-tech company Medicrea and a deal of undisclosed size for San Diego-based diabetes company Companion Medical.
Medtronic had revenues of $31.06 billion in 2019, making it Minnesota’s fifth largest public company. Medtronic is legally based out of Ireland but has its operational headquarters in Fridley, where most of its executives work. – Biz Journals