London-based LivaNova has been cutting deals left and right lately in an effort to focus on its areas of strength, such as cardiac surgery and neuromodulation. That's the reason the company gave last year for shedding its cardiac rhythm management business, and then for acquiring ImThera Medical. Now the company has its sights on Pittsburgh, PA-based TandemLife.
LivaNova has agreed to pay $200 million upfront and up to $50 million more once certain regulatory milestones have been met. TandemLife's advanced cardiopulmonary temporary support solutions are expected to compliment LivNova's cardiac surgery offerings.
TandemLife sells four product systems, all built around a common pump and controller. These systems include extracorporeal life support (ECLS) and percutaneous mechanical circulatory support (pMCS).
"Use of ECLS and pMCS systems is on the rise, and technological advancements have made products easier to use and more efficacious, leading to growth in the number of hospitals capable of performing these advanced procedures," said Damien McDonald, CEO of LivaNova. "We will leverage our customer base and global infrastructure to increase penetration in the U.S. and to expand geographically.”
TandemLife is currently running a multicenter clinical registry and is sponsoring studies for its main indications.
“The TandemLife systems allow hospitals to offer a comprehensive platform, which controls costs without sacrificing quality of care,” said Alistair Simpson, general manager of LivaNova's cardiac surgery business. “These product offerings will enrich LivaNova’s cardiopulmonary temporary support capabilities.”
The deal is projected to be modestly accretive in 2018 and is expected to close in the first half of the year, LivaNova said.