Boston, MA 09/17/2014 (wallstreetpr) – Medtronic, Inc. (NYSE:MDT) and Integra LifeSciences Holdings Corporation have entered into an asset trading deal. About $60 million is expected to shift hands in favor of Medtronic as part of the deal. The transaction is expected to close in 4Q2014 at the satisfaction of customary closing conditions, Market Watch stated in a press release.
The companies announced an agreement that would see Integra LifeSciences becoming the new owner of Medtronic’s MicroFrance business. The deal will involve the transfer of a portfolio of products, mostly surgical instruments and a manufacturing facility based on France. Under the deal, Medtronic, Inc. (NYSE:MDT) will receive about $60 million from the sale of the asset while Integra LifeSciences will inherit a large portfolio of about 4,000 instruments. Integra LifeSciences is expected to finance the deal with the cash held in its accounts outside the U.S.
Targeting outside the U.S. market
According to the latest performance report, MicroFrance generated annual revenue of about $30 million, most of which was earned outside the U.S. As such, Integra LifeSciences expects the acquisition to boost its instrument footprint outside the U.S.
The sale of MicroFrance comes at a time when Medtronic, Inc. (NYSE:MDT) continues to boost its miniature products portfolio to meet complex medical requirements. The company recently secured the U.S. Food and Drug Administration (FDA) approval for Reveal LINQ, which is an implantable cardiac monitor (ICM).
World’s smallest ICM
The regulatory clearance of Reveal LINQ paves the way for the introduction of the world’s smallest cardiac monitor device. The device measures one cubic centimeter in volume, and it is 80% smaller than most other ICMs on the market currently. Reveal LINQ records heart rhythm and sends the readings to the patient’s doctor.
Besides Reveal LINQ, Medtronic, Inc. (NYSE:MDT) is working on another miniature device known as Micra, which is touted as a slow-power super-small medical device. Micra is expected to launch in the EU market by the end of 2014 and in the U.S. by 2017.
