Ohio-based AtriCure Inc. (Nasdaq:ATRC) has agreed to acquire Morrisville-based nContact Inc., a developer of innovative cardiac ablation solutions in a deal worth almost $150 million. Both companies are developing treatments for atrial fibrillation (Afib), a heart rhythm disorder.
The transaction consideration consists of an upfront payment of approximately 3.7 million shares of AtriCure common stock, valued at $24.60 per share, and approximately $8 million in cash, subject to closing adjustments. The transaction also includes up to $50 million in additional contingent consideration based on completion of enrollment of the CONVERGE IDE trial and PMA approval.
Additionally, nContact shareholders are entitled to additional sales-based contingent consideration on revenue in excess of an annual growth rate of greater than 25 percent through 2019. All contingent consideration can be paid in either cash or AtriCure common stock, or a combination of both.
Mike Carrel, president and CEO of Aricure said in a staqtement, “nContact is an excellent strategic addition to AtriCure, as it expands and strengthens our presence in the Afib market. We expect the combined entity to provide improved market access and additional collaborationopportunities with cardiac surgeons and electrophysiologists.”
nContact develops and markets a portfolio of innovative devices that provide for less invasive ablation options for the treatment of cardiac arrhythmias. The company’s technology is used in the Convergent procedure, a multi-disciplinary therapy in which a closed-chest surgical epicardial ablation is performed, and then complemented by an endocardial catheter ablation performed by an electrophysiologist.
The company is currently conducting the CONVERGE IDE clinical trial, the first head-to-head study to evaluate the Convergent procedure versus catheter ablation in patients with persistent Afib. In addition to the ongoing IDE trial, individual center results have been published in numerous peer reviewed papers.
The deal is expected to close in the next several weeks.
www.Atricure.com
www.ncontactinc.com
