Medical device firm AtriCure has signed an agreement to acquire cardiac ablation solutions developer, nContact.
The deal will include an upfront payment of around 3.7 million shares of AtriCure common stock, valued at 24.60 per share, and $8m in cash, subject to closing adjustments.
The deal will also include an additional contingent payment of up to $50m, based on completion of enrollment of nContact’s Converge trial and PMA approval.
nContact shareholders are also eligible for additional sales-based contingent consideration on revenue in excess of an annual growth rate of greater than 25% through 2019.
AtriCure president and CEO Mike Carrel said: "nContact is an excellent strategic addition to AtriCure, as it expands and strengthens our presence in the Afib market.
"We expect the combined entity to provide improved market access and additional collaboration opportunities with cardiac surgeons and electrophysiologists."
Based in Morrisville of North Carolina, nContact develops and markets devices for the treatment of cardiac arrhythmias.
The firm’s technology is used in the Convergent procedure, a multi-disciplinary therapy in which a closed-chest surgical epicardial ablation is executed and then complemented by an endocardial catheter ablation performed by an electrophysiologist.
Currently, the firm is carrying out Converge IDE clinical study, which was designed to assess the Convergent procedure versus catheter ablation in patients with persistent atrial fibrillation (Afib).
nContact’s Epi-Sense Coagulation System with VisiTrax obtained CE mark approval for the coagulation of cardiac tissue in the treatment of Afib and atrial flutter.
According to AtriCure, the deal is expected to complete in the next several weeks, subject to customary closing conditions.
Recently, AtriCure introduced a new cryoFORM cryoablation probe, which was designed to carry out a variety of surgical ablation procedures.
The firm also produces AtriClip left atrial appendage management (LAAM) exclusion device, which is indicated for the occlusion of the left atrial appendage.