Medtronic completes 2 acquisitions for $585M
Medtronic Inc. said Wednesday it completed its acquisitions of Peak Surgical Inc. and Salient Surgical Technologies Inc., a pair of companies that make energy-based surgical tools used to minimize bleeding.
Medtronic said the combined value of the deals was $645 million, or $585 million excluding the value of its existing investments in the privately-held companies. It paid $480 million for Salient and $105 million for Peak.
Salient Surgical of Portsmouth, N.J., makes products that use radiofrequency energy and saline to seal soft tissue during surgeries, and Medtronic said its annual revenue is around $100 million.
Peak Surgical's PlasmaBlade cutting tools combine a scalpel with thermal energy technology to control bleeding, and its annual sales are currently around $20 million. Peak is based in Palo Alto, Calif.
Medtronic, which announced the transactions last month, said both companies have posted "consistent rapid growth." Sales growth for some of Medtronic's top products, like implantable heart devices, has been slow in recent years.
Shares of Medtronic rose 69 cents, or 2 percent, to $35.27 in afternoon trading.