Medtronic scoops up Massachusetts-based HeartWare

Medtronic Plc on Monday said it has agreed to acquire ailing HeartWare International Inc. for $1.1 billion, adding more products to treat heart failure to the medical-device maker’s portfolio.

Ireland-based Medtronic has a neurosurgery division based in Louisville, operating as Medtronic Navigation Inc. in the Colorado Technology Center. Medtronic’s subsidiary Covidien Ltd. operates a research and development division in Gunbarrel, northeast of Boulder, and it has a hearing-aid division, Medtronic-Sophono, in Boulder.
It is unclear how the acquisition might affect workers in Boulder, Gunbarrel and Louisville. Medtronic spokeswoman Tracy McNulty said, “Operations details will be worked out once the acquisition is completed.” The companies said they expect the deal to close during Medtronic’s second fiscal quarter, ending in late October.

The acquisition of HeartWave gives Medtronic more diagnostic tools and treatments for heart failure, a condition where the heart isn’t pumping enough blood to meet the body’s needs. HeartWare makes surgical implants that mimic the heart’s blood-pumping function, known as ventricular assist devices.

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Medtronic (NYSE: MDT) will pay $58 a share in cash for Framingham, Mass.-based HeartWare (Nasdaq: HTWR), a 93 percent premium over HeartWare’s Friday closing price of $29.98. Before Monday, HeartWare’s stock had fallen 60 percent over the past year amid declining sales, problems with product studies and an acquisition that fell through.

In 2014, Minneapolis-based Medtronic Inc. paid $42.9 billion to acquire Dublin, Ireland-based medical-device maker Covidien Plc, including operations in Gunbarrel. In 2015, Medtronic acquired Boulder-based Sophono Inc., which makes hearing aids that work by using bone conduction.