Medtronic Completes Cutbacks, Makes Pair of Surgical Technology Acquisitions Medtronic Inc. will

Medtronic Completes Cutbacks, Makes Pair of Surgical Technology Acquisitions

Medtronic Inc. will acquire PEAK Surgical Inc., a firm specializing in advanced energy surgical incision technology to broaden Medtronic Surgical Technologies’ portfolio of surgical products to meet global customer and patient needs. The announcement comes shortly after the company finished making workforce cutbacks, which resulted in the elimination of 1,700 jobs worldwide.

The total value of the transaction is $120 million. Medtronic had previously invested in PEAK and currently holds an ownership stake in the company. Net of this ownership stake, the transaction value is approximately $105 million. PEAK’s revenue is annualizing at approximately $20 million and is growing rapidly, according to Medtronic.

PEAK Surgical, based in Palo Alto, Calif., specializes in surgical instruments based on its proprietary PlasmaBlade, which consists of a family of disposable cutting devices with proprietary insulation technology that offers the exacting control of a scalpel and the bleeding control of traditional electrosurgery with minimal thermal tissue damage. PEAK’s technology is cleared for use in a variety of settings, including ear, nose and throat; plastic reconstructive; orthopedic; and general surgical applications. The PEAK Surgery System is cleared for use in the United States, and for use in general surgery in the European Union. In the United States, the PEAK Surgery System was launched in July 2008 and has been used by U.S. surgeons on more than 25,000 patients.

“We are excited about this opportunity to bring our companies together and further broaden Medtronic Surgical Technologies’ portfolio of innovative surgical products to meet customer and patient needs worldwide,” said Chris O’Connell, executive vice president and president of Medtronic’s Restorative Therapies Group.

In a separate development, Medtronic announced it has signed an agreement to acquire Salient Surgical Technologies Inc. of Portsmouth, N.H., another firm working on advanced energy surgical technology, particularly in the area of advanced haemostatic sealing of soft tissue and bone in various surgical procedures, including orthopaedic surgery, spine, open abdominal and thoracic procedures.

The total value of the transaction is $525 million. Medtronic previously had invested in Salient and currently holds an ownership stake in the company. Net of this ownership stake, the transaction value is approximately $480 million.

Medtronic is headquartered in Minneapolis, Minn.