Medical technologies provider Teleflex has agreed to acquire US medical device firm NeoTract for around $1.1bn.
Under the deal, Teleflex will pay $725m to NeoTract at closing of the acquisition, as well as up to an additional $375m based on the achievement of certain commercial milestones related to sales through the end of 2020.
Established in 2004, NeoTract is engaged in the development of novel, minimally invasive and clinically effective devices for the field of urology.
The company produces FDA-approved UroLift system, which is a minimally invasive technology for the treatment of lower urinary tract symptoms due to benign prostatic hyperplasia (BPH).
The system, which delivers permanent implants that hold open the urethra, can be used through a transurethral outpatient procedure.
Subject to the satisfaction of customary closing conditions, the deal is expected to be completed within one month.
Teleflex chairman and CEO Benson Smith said: “NeoTract is a truly unique company with a differentiated technology that targets a greater than $30bn addressable market, and through their internally developed, patented UroLift system, have achieved sequential quarterly revenue growth of 20% or greater in 13 of the past 14 quarters.”
NeoTract president and CEO Dave Amerson said: “Today's announcement is a recognition of our focus on patient outcomes and the hard work and dedication of the entire NeoTract team.”
In February this year, Teleflex acquired another US medical device firm Vascular Solutions for around $1bn.
Established in 1997, Vascular Solutions is engaged in the development of clinical solutions for minimally invasive coronary and peripheral vascular procedures.
Its product portfolio includes around 90 products and services, which can be used by interventional cardiologists, interventional radiologists, electrophysiologists and vein specialists.
Image: Teleflex to acquire medical device firm NeoTract. Photo: courtesy of adamr / FreeDigitalPhotos.net.