“The opportunity to reach more patients and physicians with a proven therapy designed to treat snoring and OSA through Medtronic?s growing ENT business is exciting for Restore Medical,” says Bob Paulson, president and CEO of Restore Medical, in a statement. “Minimally invasive, office-based procedures to treat snoring and sleep apnea is a large and underserved market.”
Cleared by the FDA, the Pillar System complements Medtronic?s existing family of ENT products used to treat a variety of other upper-airway obstructions, including the sinuses and tonsils/adenoids. The addition of the Pillar System lets Medtronic provide its physician customers with another minimally invasive, low-morbidity option to treat patients suffering from OSA and snoring.
“This acquisition will help deliver new growth for our ENT business by providing Medtronic with a proven office-based procedure in a very fast growing segment of the sleep market,” says Bob Blankemeyer, president of the ENT business at Medtronic. “Medtronic can quickly leverage its distribution and marketing strengths to improve patient and surgeon access to this minimally invasive therapy.”
The total value of the transaction, including payment of Restore Medical debt will be approximately $29 million. The transaction, which is anticipated to close within 90 days, is expected to be accretive to Medtronic earnings in the first full fiscal year after closing, and is subject to customary closing conditions, including approval by Restore Medical shareholders.
