Edwards Lifesciences (NYSE:EW) agrees to acquire privately held Valtech Cardio. The Or Yehuda, Israel-based firm markets a portfolio of solutions for mitral and tricuspid valve repair and replacement. Its flagship product is the Cardioband System which combines a reconstruction implant with a transcatheter approach. It was CE Mark'd in 2015.
Under the terms of the agreement, Edwards will pay $340M in cash and stock at closing and up to $350M in milestones over the next 10 years. In Q1, Valtech intends to spin off its early-stage transseptal mitral valve technology program, which Edwards retains an option to acquire.
Separately, Edwards' board authorizes a new share buyback program to repurchase up to an additional $1B of the company's common stock. It has $277M remaining of its current $750M repurchase plan. The new authorization will offset the dilution from the Valtech transaction.
Management will discuss the Valtech deal and release 2017 guidance at its annual investor conference on December 8.
Edwards Lifesciences (NYSE:EW) agrees to acquire privately-held CardiAQ Valve Technologies for as much as $400M, including $350M in cash at closing and the remainder payable after achieving a European regulatory milestone.
CardiAQ is a developer of a transcatheter mitral valve replacement system, but EW says its valve system is not yet approved for sale in any country.
EW says it expects the acquisition will be slightly dilutive to 2015 EPS, and will provide further guidance when Q2 earnings are released July 28.