US healthcare company Medtronic has bought two companies in which it owned minority stakes: surgical businesses Salient Surgical Technologies and Peak Surgical.
Medtronic bought Salient and Peak Surgical at valuations of $525m and $120m respectively. Its minority stakes in the two companies were worth $45m for Salient and $15m for Peak Surgical, and these sums were deducted from the headline prices.
News provider Fortune said Salient has raised at least $105m in its history. In January last year Salient raised $15.1m in series G round from Medtronic, advisory firm Arnerich Massena & Associates and venture firms Apothecary Capital/BBT Fund, Affinity Capital, and other unnamed financial and strategic investors.
In October 2008 it raised $17.9m in its series F round from Medtronic, US bank Piper Jaffray as well as venture firms Arnerich Massena and RiverVest Venture Partners. In 2007 it raised a $20m series E round.
Salient filed to raise up to $86.3m in a flotation in 2008, although this was subsequently aborted
Chris O’Connell, president of Medtronic’s Restorative Therapies Group, said: "Integrating the Salient Surgical Technologies organisation 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."
Peak Surgical has raised more than $29m in three rounds of financing, according to its website. It raised $21m in a series C financing in February 2008. The series C was led by venture firm Signet Healthcare Partners, while US bank Lehman Brothers and venture firm Venrock Associates also participated as well as Medtronic. The company’s series A and B rounds were jointly led by Lehman Brothers and Venrock.
Medtronic’s O’Connell said: "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."