St Jude Medical, a New York-listed medical device company, has invested $60m and taken out an exclusive option to buy venture-backed CardioMems.
Through the investment St Jude buys 19% of CardioMems and the right to buy the company for $375m if undisclosed milestones are achieved.
In May, CardioMems, a developer of wireless medical pressure sensors, raised $37.9m in its seventh round of funding.
CardioMems has previously raised $107m from US-based healthcare company Medtronic and venture capital firms Arcapita Ventures, Boston Millennia Partners, Easton Capital Partners, Foundation Medical Partners, Arboretum Ventures, Deerfield Capital Management, Vision Capital Advisors, Aperture Venture Partners and Rockport Venture Securities.
Eric Fain, president of St Jude’s cardiac rhythm management division, said: "Investing in CardioMems reaffirms our commitment to technology platforms that improve heart failure management and the potential benefits of hemodynamic monitoring for both patients and the health care economic system."
BofA Merrill Lynch is acting as financial adviser and Gibson Dunn & Crutcher as legal counsel to St Jude. JP Morgan was adviser and Cooley the lawyers for CardioMems.