MINNEAPOLIS (AP) -- Medtronic Inc., the world's largest medical device maker, said Monday it will pay $800 million in cash to buy the remaining 89 percent of blood pressure treatment maker Ardian Inc. that it doesn't already own.
Privately held Ardian makes a catheter system designed to treat high blood pressure by deactivating nerves around the kidneys, a therapy called renal denervation. Ardian's Symplicity Catheter System was approved in Australia and Europe but is not yet cleared for sale in the U.S. Medtronic already owns 11 percent of the Mountain View, Calif., company.
"(Hypertension) is a significant, escalating global healthcare problem affecting approximately 1.2 billion people and is associated with an increased risk of heart attack, stroke, heart failure, kidney disease and death," said Sean Salmon, vice president and general manager of Medtronic's coronary and peripheral business. "We view renal denervation for the treatment of uncontrolled hypertension as one of the most exciting growth markets in medical devices."
The deal is expected to close in Medtronic's fiscal third quarter, which ends in January. Ardian will also receive milestone payments that are equal to the revenue growth in Medtronic's renal denervation business through the end of Medtronic's fiscal year 2015. Medtronic's fiscal years end in April.
Medtronic is scheduled to announce its fiscal second-quarter results on Tuesday morning. Its shares rose 10 cents to close at $34.70 on Monday.