Volcano Corporation, a manufacturer of medical tools to treat heart disease, has agreed to acquire AtheroMed, the developer of a system to treat peripheral artery disease for $115m, granting an exit to Kaiser Permanente Ventures.
The corporate venturing arm of managed care consortium Kasier Permanente invested in a $4.5m round for AtheroMed in 2012 together with Canaan Partners and US Venture Partners, and a $6m round in April 2013 that featured those venture capital firms as well as Vertical Group.
Altogether, AtheroMed has raised about $26.4m in equity funding and $5.4m in debt. It also reportedly received a $13m investment from Vertical Group in April 2012, though this could not be confirmed.
Volcano will pay an additional $15m in milestone payments if AtheroMed’s Phoenix Atherectomy System can secure regulatory clearance by November 15 this year. It plans to initiate a limited market release of the Phoenix by the end of this year and a full market release in early 2015.