Medical technology producer LivaNova agreed yesterday to pay up to $225m to acquire the outstanding shares of US-based sleep apnoea device maker and portfolio company ImThera Medical.
The acquisition will consist of $78m upfront, with the full amount applicable dependent on regulatory and sales milestones. The deal is expected to close in early 2018.
ImThera produces neurostimulation devices made up of a small implanted generator and electrode lead together with an external remote control, to treat obstructive sleep apnoea (OSA) by stimulating the tongue muscles to ensure a patient’s airway is open while they are asleep.
LivaNova was formed in 2015 through the merger of epilepsy device producer Cyberonics and cardiovascular health device maker Sorin, and Cyberonics had been an investor in ImThera since 2011 when it agreed to invest between $4m and $12m alongside $4m from existing investors.
ImThera has raised about $25m in equity financing, according to regulatory filings, but has not disclosed details of its full range of investors.
Damien McDonald, chief executive of LivaNova, said: “The OSA market is large and growing, with many unmet needs.
“With our strong commercial capabilities and robust manufacturing, we look forward to bringing this innovative technology to the large patient population that has been unsuccessful with other treatments, allowing them to improve their quality of life.”
– Image courtesy of ImThera Medical.