LivaNova (NSDQ:LIVN) said today that it closed the $190 million sale of its cardiac rhythm management business to China’s MicroPort Scientific (HK:00853).
The companies are already partners in a CRM join venture in the People’s Republic. LivaNova, formed by the $2.7 billion merger of Italy’s Sorin and Cyberonics in October 2015, said in September that it was putting the CRM business on the auction block. The business pulled in sales of $249 million last year.
After announcing its plans for the divestiture last November, LivaNova said the details of the sale were finalized last month.
“With the completion of the CRM sale to MicroPort, LivaNova’s portfolio is now concentrated on our areas of strength and leadership: cardiac surgery and neuromodulation,” CEO Damien McDonald said today in prepared remarks. “This transaction enables us to concentrate our efforts on developing market-leading businesses in these areas, and will assist us in enhancing LivaNova’s position as an innovative medical device company that improves the lives of patients around the world and creates value for our shareholders.”
LivaNova has said it expects the sale to cut 5% to 10% from its adjusted earnings per share and 20% from the top line this year, after it begins reporting the CRM numbers as a discontinued operation. MicroPort, which just last week acquired Lombard Medical Technologies (NSDQ:EVAR) out of bankruptcy, has said the LivaNova CRM acquisition isn’t expected to affect its books this year.
LivaNova has been on a mini-spree of late, acquiring ImThera for $225 million in January and just this month spending another $250 million on TandemLife.
