Merit Medical Systems has completed the acquisition of Aliso Viejo, CA-based, Cianna Medical. The South Jordan, UT-based company put an upfront payment of $135 million with potential earn-out payments of an additional $15 million for achievement of supply chain and scalability metrics, and up to an additional $50 million for achievement of sales milestones.
Merit said that Cianna specializes in wire-free breast localization and has been focused on breast conservation for 11 years. Its research, development and commercialization teams developed a non-radioactive, wire-free breast localization system and technology that uses RADAR in human tissue. Its SCOUT and SAVI Brachy technologies are FDA-cleared and address unmet needs in the delivery of radiation therapy, tumor localization and surgical guidance.
“We are delighted to have Cianna Medical join the Merit family,” Fred P. Lampropoulos, Merit’s chairman and CEO, said in a release. “We are looking forward to continuing Cianna’s momentum, expanding internationally, and associating with Cianna Medical’s domestic sales and marketing team.”
The SCOUT device has grown from $1 million in revenues in its 2015 debut to a projected $29 million in revenues in 2018. Current estimated market share is about 5% with no revenues currently outside the U.S.