Medtronic acquires PEAK and Salient

Medtronic, Inc. (NYSE: MDT) today announced that it has completed the acquisition of two privately-held companies, PEAK Surgical, Inc. and Salient Surgical Technologies, Inc. Both of the companies are focused on advanced energy surgical technologies and will broaden Medtronic Surgical Technologies' portfolio of innovative surgical products to meet customer and patient needs worldwide.

PEAK Surgical is a recognized leader in the emerging field of advanced energy surgical incision technology, including its patented PlasmaBlade® cutting technology that is cleared for use in a variety of settings, including Ear, Nose and Throat (ENT), plastic reconstructive and general surgical applications. Under the terms of the agreement announced on July 7, 2011, the total value of the transaction is $120 million. Medtronic had previously invested in PEAK and held an ownership stake in the company prior to completion of the acquisition. Net of this ownership stake, the transaction value is approximately $105 million. PEAK's revenue is annualizing at approximately $20 million and has shown consistent rapid growth.

Salient Surgical Technologies is a recognized leader in the advanced energy category for haemostatic sealing of soft tissue and bone, including its patented TRANSCOLLATION® technology that is cleared for use in a variety of surgical procedures including orthopaedic surgery, spine, open abdominal and thoracic procedures. Under the terms of the agreement announced on July 7, 2011, the total value of the transaction is $525 million. Medtronic had previously invested in Salient and held an ownership stake in the company prior to completion of the acquisition. Net of this ownership stake, the transaction value is approximately $480 million. Salient's revenue is annualizing at approximately $100 million and has shown consistent rapid growth.

"We are pleased to have reached the milestone of completing the acquisitions of PEAK Surgical and Salient Surgical Technologies so we can focus on offering a more broad portfolio of innovative surgical products to meet our global customer and patient needs," said Chris O'Connell, EVP and President of Medtronic's Restorative Therapies Group. "Together, these acquisitions represent Medtronic's commitment to innovation across the entire surgical continuum from incision to closing, and represent entries into new areas such as plastic/reconstruction, electrophysiology, oncology and large bone orthopedics."