Haemonetics to Acquire Attune Medical for $160M

Haemonetics today announced it has entered into a definitive agreement to acquire privately-held Attune Medical, which manufacturers the ensoETM proactive esophageal cooling device indicated for esophageal protection during radiofrequency cardiac ablation procedures.

The acquisition will reportedly be financed through an upfront cash payment of $160 million at closing plus “additional contingent consideration based on sales growth in the three years following the consummation of the transaction and the achievement of certain other milestones,” according to the press release announcing the deal.

Haemonetics said they expect the acquisition to increase the company’s presence in the electrophysiology market as well as complement its existing portfolio in vascular closure.

EnsoETM, Attune’s Hero product, is the only FDA-cleared temperature regulation device indicated for esophageal protection during radiofrequency cardiac ablation procedures — significantly reducing the likelihood of esophageal injury. Additionally, according to the company, studies have shown reductions in procedure times, patient readmissions, and increased rates of same-day discharge and long-term procedure success.

Following the completion of the transaction, Haemonetics said it expects the deal to be immediately accretive to its revenue growth and adjusted EPS, citing Attune’s 2023 revenue of approximately $22 million, which was more than double its revenue from 2022.

Needham analysts noted that the acquisition represents a large market opportunity for Haemonetics. However, with recently approved pulse field ablation products hitting commercialization, they also expect the thermal ablation market to shrink.

“The acquisition complements [Haemonetics] Vascade vascular closure products within its hospital business and is consistent with management's previously stated M&A strategy, however we expect recently approved pulsed field ablation (PFA) products to take significant share from thermal ablation (RF/cryo) where ensoETM is used,” The analysts wrote. “While we expect thermal ablation to maintain a presence in the market, we expect its market share to shrink from ~100% of US ablation procedures in 2023 to ~20-30% of US ablation procedures within 5+ years as PFA replaces thermal ablation. However, we believe that this still represents a large market opportunity for ensoETM.”

Haemonetics expects the transaction to be completed in Q125.