Medtronic to buy surgical device firms for $645M

Medtronic has agreed to purchase Salient Surgical Technologies and Peak Surgical at a combined total of $645 million, according to the company, which said it aims to expand its surgical device offerings.

The Portsmouth, N.H.-based Salient Surgical Technologies developed surgical instruments for haemostatic sealing for soft tissue and bone in a variety of procedures. The company developed and patented the Aquamantys system and the Transcollation technology for use in orthopedic surgery, as well as spine, open abdominal and thoracic procedures.

“Integrating the Salient Surgical Technologies organization will bring new applications to Medtronic Surgical Technologies’ current surgical therapy areas and expand the company’s opportunities in adjacent offerings, helping Medtronic serve new customers and better meet the needs of existing ones,” said Chris O’Connell, executive vice president and president of Medtronic’s restorative therapies group.

The Palo Alto, Calif.-based Peak Surgical develops surgical instruments based on its PlasmaBlade technology, which consists of disposable cutting devices that maximize scalpel control and bleeding control. The company’s technology has been cleared for surgical use in the ear, nose and throat, as well as plastic reconstructive, orthopedic and general surgical applications.

“Peak's advanced energy cutting technologies complement our existing surgical product line, strengthening our core offerings and enabling us to offer surgeons and patients a full spectrum of leading products across the entire surgical continuum,” O’Connell said.

Medtronic had previously invested and shared ownership stakes in both companies. Excluding those interests, the deals are valued at about $585 million. Salient is earning nearly $100 million annually and Peak is earning $20 million, according to Medtronic, which said both companies are rapidly growing leaders in surgical technology.