AtriCure Snatches Up Surgical Ablation Firm Estech for $34 Million

AtriCure has announced its plans to acquire Estech, which will enable it to offer physicians a broader range of products in treating patients with atrial fibrillation and related complications. "Afib remains a large and growing market. Our ongoing investments in R&D, physician education and training, clinical science and commercial execution are major steps to capitalize on this market opportunity," explained Mike Carrel, president and CEO of AtriCure, in a news release. Estech has developed the unique COBRA temperature-controlled RF energy platform for atrial fibrillation that has driven much of its growth. Overall, AtriCure has also been a fairly solid performer. Its stock almost tripled in value in a year's time, from below $7.00 per share in December 2012 to $18.03 on December 20, 2013. Analyst firm Canaccord Genuity recently increased its price target for the firm to $19.00. Still, the company has also had growing operating expenses, which drove up quarterly losses early in 2013 to $1.8 million. AtriCure expects the Estech acquisition to make it profitable by 2015.AtriCure anticipates that the acquisition will translate into higher R&D costs and will lead to increased sales costs. These costs, however, will enable it to integrate and advance its combined product portfolio.AtriCure already had a portfolio of technology designed to treat atrial fibrillation that are intended to help curb the cost of treatment. Its Synergy ablation device is the only device that has been approved to treat persistent forms of atrial fibrillation for patients undergoing a number of open concomitant procedures. Its left atrial appendage exclusion device has been widely adopted globally.