Boston-based Haemonetics’ agreement includes an upfront cash payment of $475 million at closing, along with up to an additional $35 million in contingent consideration based on sales growth, according to a news release.
The acquisition is subject to customary closing conditions with expectations that it will be completed in the first quarter of the calendar year 2021.
Sunnyvale, Calif.-based Cardiva Medical develops a portfolio that includes two catheter-based vascular access site closure devices — the Vascade vascular closure system for “small-bore” femoral arterial and venous closure and the Vascade MVP system for “mid-bore” multi-access femoral venous closure.
Vascade is touted as the only marketed closure device that significantly reduces access site complications compared to manual compression. The company said that Vascade MVP is the only FDA-approved closure device for use following cardiac ablation procedures requiring two or more access sites within the same vessel.
Both devices in Cardiva’s portfolio include the company’s proprietary collapsible disc technology and a resorbable collagen patch to achieve hemostasis.
“We are excited to add Cardiva’s vascular closure technology to our portfolio and look forward to welcoming their talented team,” Haemonetics president & CEO Chris Simon said in the release. “This acquisition immediately expands and diversifies our hospital offerings in the large and growing interventional cardiology and electrophysiology markets and aligns with our innovation agenda.”
The acquisition is slated to bring in between $65 million and $75 million in revenue during the first fiscal year. Haemonetics expects the transaction to be dilutive to adjusted net earnings per diluted share by between -15¢ and -20¢ per share in fiscal 2022, turning neutral in fiscal 2023. By year five, the acquisition is expected to deliver a 10% rate of return on invested capital.
Haemonetics intends to finance the deal with a combination of cash, its existing revolving credit facility and an additional $150 million term loan.
“We are delighted to become part of a company that shares our commitment to technology leadership and meaningfully advancing patient care in some of the most critical areas of medicine,” Cardiva president & CEO John Russell said. “We believe that Haemonetics’ history of leadership in hemostasis management makes the Company an ideal partner to realize the full potential of our Vascade platform technology.”