Farapulse, a US-based ablation technology developer spun out of University of Iowa, has agreed to an acquisition by medical device and existing shareholder Boston Scientific for $295m.
Boston Scientific currently owns a 27% stake in the company and is taking up an option to purchase all the remaining shares. It may pay out an additional $92m in milestone payments, as well as an undisclosed amount in revenue-based payments over the next three years.
Founded in 2014 as Iowa Approach, Farapulse has developed a non-thermal ablation system to treat cardiac arrhythmias including atrial fibrillation. Its technology is expected to complement Boston Scientific’s electrophysiology portfolio.
The company’s device has already launched commercially in Europe, and Boston Scientific will look to accelerate the regulatory approval process in the US.
Boston Scientific last invested in Farapulse in September 2020, having first backed the company in 2014 according to the acquisition announcement, though it has not revealed details of how much it provided.
F-Prime Capital, a subsidiary of investment and financial services group Fidelity, invested in the company in 2015, it said in its portfolio listing. Sante Ventures also lists Farapulse in its portfolio.
Farapulse raised $4.3m in equity and debt financing in 2015 and $15m in a 2016 round that included a conversion of $6m of notes, before adding $5m in 2017 and $12m in series A2 financing the following year, according to securities filings.
The original version of this article appeared on our sister site, Global University Venturing.
