Transaction will see Medtronic expand portfolio of products used during ear, nose and throat procedures.
Last Friday, the medical device maker Medtronic announced it would be acquiring Intersect ENT Inc for $936.2 million in a cash deal as it looks to strengthen its offerings for products used during ear, nose and throat procedures. As part of the transaction, the Dublin-headquartered firm will be purchasing all of Intersect’s outstanding shares for $28.25 per share - a 15.2% premium to Intersect’s closing price on Thursday. The deal values Intersect at an enterprise value of nearly $1.1 billion and was unanimously approved by the boards of directors of both companies. The transaction is expected to close by the end of Medtronic’s current fiscal year. Last month, Medtronic’s two artificial intelligence algorithms received the FDA’s clearance for use with the LINQ II insertable cardiac monitor.
Intersect ENT, whose steroid-releasing implants are designed to provide mechanical spacing and deliver targeted therapy to the site of disease. The company has seen a surge in the demand for its products as people resume elective procedures previously put off due to the pandemic. Its second-quarter revenue is said to have more than doubled to $27.3 million from a year earlier. "This acquisition directly aligns with our commitment to delivering continuous innovation that helps ENT patients," said Vince Racano, president of the ENT business. "Intersect ENT's sinus implants are clinically proven to offer relief and healing to patients suffering from chronic rhinosinusitis. Combining this innovative technology with our established global presence and sales infrastructure will allow us to broaden our capabilities while expanding access to these valuable therapies."