TE Connectivity to Buy AdvancedCath

TE Connectivity Ltd. has agreed to acquire AdvancedCath from its private-equity owner for $190 million in cash.

Watertown, Mass.-based AdvancedCath makes catheter systems and, according to figures cited by TE Connectivity, had estimated 2015 revenues of $60 million. AdvancedCath was formed via the merger of AdvancedCath Technologies, MP&E and TechDevice. The company works with medical device OEMs to design and manufacture catheter and guidewire systems used in complex interventional and endosurgical procedures. The firm is owned by Philadelphia, Pa.-based private equity firm Inverness Graham

The acquisition complements and expands TE’s connectivity and sensor position in the interventional space of the outsourced manufacturing market, which is growing at 10 percent annually. It also will allow TE to provide more complete integrated solutions to customers, company officials said.

TE’s medical business designs and manufactures connectors, sensors and components for use in surgical, interventional catheter, imaging, diagnostic and therapeutic healthcare applications. Upon the completion of the transaction, the AdvancedCath team will be part of TE’s Medical business unit, which in turn is part of TE’s Industrial Solutions segment.

“The acquisition of AdvancedCath expands TE’s Medical business and positions us to be a leading provider of connectivity and sensor solutions in the high-growth medical device market,” said Terrence Curtin, president, TE Connectivity Industrial Solutions. “Today’s [medical device] OEMs are developing innovative procedures that are minimally invasive to improve outcomes and quality of care. The combination of TE’s connectivity and sensor solutions with AdvancedCath’s expertise in the medical device market provides customers with an unmatched set of capabilities and technologies that enable future innovations and medical advances. We look forward to welcoming AdvancedCath’s talented team to TE.”

“We can now offer customers an unmatched combination of sensor, material science, electrical and biomedical technologies and a single source of manufacturing expertise for advanced medical devices,” said Randall Sword, CEO of AdvancedCath. “With TE’s geographic footprint, we can provide better support to our global customers as they progress through development, clinical trials and volume manufacturing.”

The transaction is subject to regulatory approval and other customary closing conditions and is expected to close in late March.

TE is based in Schaffhausen, Switzerland.