Haemonetics Corporation [NYSE: HAE] revealed that the company has inked a definitive contract to purchase Cardiva Medical Inc. Under the contract, Haemontics will pay an upfront payment of $475Million in cash to purchase Cardiva. Furthermore, based on the sales growth the company will pay an additional payment of $35million in conditional consideration.
Cardiva is a California based vascular closure system manufacturer. The portfolio of the company consists of two vascular access site closure devices bases on the catheter. The VASCADE and the VASCADE MVP vascular closure system. The former is designed to treat small-bore femoral and arterial-venous closure Meanwhile the latter is designed to treat mid-bore multi-access femoral venous closure.
VASCADE MVP is the only existing devices that the FDA has approved for the use of cardiac ablation procedures. The acquisition will close in 2021’s first quarter. Moreover, from this acquisition, nearly $65M to $75 M income will be generated in the first fiscal year.
Cris Simon CEO and president of Haemonetics said “ we are glad to add Cardiva Medical team t our family. We are also really excited to add their technology to our portfolio which expands our hospital offerings”.