Merit Medical (NSDQ:MMSI) said yesterday that it closed its $200 million acquisition of Cianna Medical, making the company a wholly-owned subsidiary.
Aliso Viejo, Calif.-based Cianna makes the Savi Scout wire-free breast tumor localization system, designed to produce audible and visual indicators surgeons can use to tag cancerous tissue during lumpectomy and biopsy procedures. The device won 510(k) clearance from the FDA in December 2014.
The deal included an up-front cash payment of $135 million, plus $15 million in earn-outs pegged to supply chain and scalability goals and another $50 million in sales milestones, South Jordan, Utah-based Merit Medical said.
“We are delighted to have Cianna Medical join the Merit family. We are looking forward to continuing Cianna’s momentum, expanding internationally, and associating with Cianna Medical’s domestic sales and marketing team,” Meric chair & CEO Fred Lampropoulos said in a press release.
Upon announcing the deal early last month, Lampropoulos said Merit plans to keep “substantially all” of Cianna’s commercial and R&D teams in place, adding logistical and clinical support to enter new markets.
Late last month, Merit Medical put up third-quarter numbers that beat expectations on both sales and earnings and confirmed that it’s on track to hit the midpoint of its guidance for the rest of the year.
