Medtronic announced its intent to acquire CathWorks, advancing its innovation strategy in cardiovascular care. The planned acquisition builds on a strategic partnership formed in 2022, which included a co promotion agreement for the CathWorks FFRangio System across the U.S. Europe and Japan.
The acquisition is valued at up to $585 million, with additional undisclosed earn out payments possible after closing. CathWorks develops AI based technology designed to improve the diagnosis and treatment of coronary artery disease. Its FFRangio System provides a comprehensive physiological assessment of coronary arteries using routine angiograms, offering an alternative to traditional wire based fractional flow reserve methods that are more invasive and less widely adopted.
By exercising the acquisition option, Medtronic aims to expand its interventional cardiology pipeline and strengthen its position in coronary physiology assessment. The technology is intended to help physicians better identify clinically significant lesions while reducing unnecessary procedures.
The transaction is subject to regulatory review including clearance from the Federal Trade Commission and is expected to close by the end of Medtronic’s fiscal year 2026. Until closing, both companies will continue to operate independently. The acquisition is expected to have no material impact on Medtronic’s fiscal year 2027 earnings per share and to be neutral to accretive thereafter.
Leave a comment