Integra LifeSciences
(Nasdaq: IART)
announced that it completed its previously announced acquisition of Acclarent from Johnson & Johnson MedTech
(NYSE: JNJ)
.
Princeton, New Jersey-based Integra struck a deal with J&J to acquire Acclarent for $275 million upfront at the end of 2023. The deal also includes an additional $5 million upon the achievement of regulatory milestones.
Acclarent, part of J&J MedTech’s Ethicon unit, enhances Integra’s position in the ear, nose and throat (ENT) treatment market. Integra already offers the MicroFrance line of ENT instruments. Acclarent’s portfolio features groundbreaking balloon technologies for sinus dilation and eustachian tube dilation. The Irvine, California-based company also offers surgical surgical navigation systems. Its U.S. product sales generated about $110 million in 2022.
According to Integra, the now-completed acquisition expands the breadth of its market-leading brands. It also provides immediate scale and accretive growth through a dedicated sales channel.
When the companies announced the agreement, analysts viewed the deal’s synergies as “less obvious.” They were unsure on the benefits of the deal with the Acclarent navigation and shaver products going up against the established likes of Medtronic and Stryker in the market.
However, Integra officials appear optimistic with the acquisition now complete.
“Acclarent’s strong commercial capabilities, R&D expertise, advanced portfolio and deep clinical knowledge will be important assets to Integra, enabling us to deliver transformative technologies to restore patients’ lives,” said Mike McBreen, EVP and president, Codman Specialty Surgical division. “We are looking forward to working alongside our Acclarent colleagues to make a profound impact on ENT and neurosurgery care.”
