Medtronic (NYSE:MDT) said today that it paid $200 million in cash to acquire Sapiens Steering Brain Stimulation and its deep-brain stimulation technology, even as it gears up to pay $43 billion for Covidien (NYSE:COV).
Eindhoven, Holland-based Sapiens is developing a DBS device with a lead featuring 40 stimulation points that’s designed for more precise stimulation of targeted areas of the brain, according to a press release.
"This acquisition broadens our neuroscience leadership position with innovative brain modulation technology that, along with our comprehensive portfolio of DBS solutions, may one day transform the way physicians are able to treat patients with neurodegenerative diseases like Parkinson’s disease and essential tremor," Medtronic brain modulation general manager Lothar Krinke said in prepared remarks.
"Since 2011, Sapiens SBS employees have worked tirelessly to develop an advanced deep brain stimulation system," added Sapiens CEO Jan Keltjens. "We are excited to join Medtronic, and look forward to collectively working to bring this and other novel technologies and therapies to neuromodulation patients worldwide that could benefit from them."
It’s the 2nd time in as many years that Keltjens has led a medical device company to an exit with a large-cap medtech player. A year ago St. Jude Medical (NYSE:STJ) agreed to pay up to $331 million, including $170 million in up-front cash, for Swiss force-sensing catheter maker Endosense, where Keltjens was also CEO.
Neither Medtronic nor Covidien are letting their pending merger get in the way of their other acquisition efforts. Last week Covidien snapped up Reverse Medical and its line of vascular devices for an unspecified amount.