The deal calls for London-based BTG to pay $84.5 million (£58.3 million) in up-front cash and another $25.5 million (£17.6 million) in regulatory and commercial milestones, which are live until the end of 2018.
Arden Hills, Minn.-based Galil makes cryoablation devices to treat kidney cancer; a pair of clinical trials is under way for treating metastasized cancers in the lungs and bone, BTG said. Galil, which employs about 100 people, posted sales of about $22 million last year, with $15 million coming from the U.S.
“This bolt-on acquisition builds on our leadership in interventional oncology, expanding our portfolio of minimally invasive therapies with the leading technology in the cryoablation of kidney cancer. It also offers significant pipeline opportunities, including lung and bone metastases if regulatory approvals are granted. In addition to enhancing our offering to interventional radiologists, Galil Medical provides access to other specialist physicians that may in future include pulmonary specialists, complementing our existing PneumRx and EKOS businesses. Longer term, we are excited by the opportunity to explore the use of our locoregional radiation and cryoablation therapies alongside other developing technologies,” BTG CEO Louise Makin said in prepared remarks.
BTG, which plans to fund the deal with existing cash, said it expects the buyout to add to earnings in the 1st year. The acquisition is expected to close by the end of June, BTG said.
Galil, which last December spiked an $11 million tender offer for Perseon Medical(NSDQ:PRSN) and its MicroThermX microwave ablation device, is backed by venture capital shops Thomas, McNerney & Partners, The Vertical Group and Investor Growth Capital.