AtriCure, Inc.(NASDAQ:ATRC), a Mason, OH-based developer of treatments for atrial fibrillation (Afib) and left atrial appendage (LAA) management, is to acquire SentreHEART, Inc., a Redwood City, California-based developer of percutaneous left atrial appendage management solutions, for up to $300m.
The deal consideration consists of an upfront payment of approximately $40m in cash and AtriCure common stock, plus additional contingent consideration based on the achievement of certain clinical and reimbursement milestones over the next several years, all of which are value-creating events.
Of the contingent consideration, $140m is based on milestones related to the aMAZE™ IDE clinical trial, including PMA approval, and $120m is based on a milestone related to reimbursement for the therapy involving SentreHEART devices.
All contingent consideration would be payable in a combination of cash and stock.
The transaction is expected to close in the next several days, subject to customary closing conditions.
Founded in 2005, SentreHEART is a medical device company which has developed innovative technology for remote delivery of suture for closure of anatomic structures including the LAA. The company is committed to clinical evidence development and is currently sponsoring the FDA-approved prospective, multi-center, randomized controlled trial known as the aMAZE Trial evaluating the LARIAT Suture Delivery Device for LAA closure adjunctive to Pulmonary Vein Isolation (PVI) catheter ablation for the treatment of persistent and longstanding persistent Afib.
Led by Michael Carrel, President and Chief Executive Officer, AtriCure provides electrophysiologists and cardiothoracic surgeons with innovative technologies for the treatment of Afib and related conditions. Its Isolator® Synergy™ Ablation System received FDA approval for the treatment of persistent Afib.
AtriCure projects total revenue for 2019 to be in the range of $224.5 million to $228.5 million, which includes minimal contribution from SentreHEART, and reflects approximately 11% to 13% organic growth. Revenue contribution from SentreHEART is expected to be nominal until after completion of the aMAZE Trial and PMA approval.