The deal calls for Medtronic to pay $70 million up front, plus another $35 million in milestone payments, according to a press release.
Medtronic, a strategic investor with an ownership stake in Houston-based Visualase, said the net payment including that stake is roughly $64 million.
Visualase’s device, which Medtronic said has approval from the FDA, is an MRI-guided laser and image-guided system for minimally invasive neurosurgeries including surgical thermal ablation, according to the release. Medtronic said it plans to add the device to its surgical technologies division "and will integrate the technology into its broader neuroscience offerings."
"We are excited about this opportunity to add Visualase’s complementary technology and expertise to our neurosurgical solutions portfolio, which includes intra-operative imaging, surgical navigation, powered instruments and cerebrospinal fluid (CSF) management," surgical technologies president Mark Fletcher said in prepared remarks. "The Visualase laser ablation technology gives neurosurgeons a minimally invasive option to precisely target and treat small areas of tissues. We are the recognized leader in high technology solutions for specialties such as neurosurgery, spinal surgery and orthopedics. This acquisition broadens our strong and growing portfolio of innovative surgical products and represents entries into new areas such as surgical thermal ablation."
"The transaction with Medtronic is critical to ensure more patients have access to our beneficial technology," added Visualase CEO William Hoffman. "We are proud of the MRI-guided laser ablation technology and other products we have developed and their impact on the well-being of patients. Medtronic is clearly committed to the area of minimally invasive neurosurgery and we look forward to working as a team to innovate in this area."
Medtronic said it expects the deal to be neutral to fiscal 2015 earnings and accretive thereafter.