Transaction Adds Catheter Navigation and Location Confirmation Technology to Product Portfolio
Limerick, PA – Teleflex Incorporated (NYSE: TFX), a leading global provider of medical technology products, today announced it has acquired privately-held VasoNova Inc. in a transaction valued at up to $55 million.
Based in Menlo Park, CA, VasoNova has developed a unique central venous catheter navigation technology that allows for real-time accurate confirmation of placement of peripherally inserted central catheters and central venous catheters in the lower one third of the superior vena cava, the optimal position for catheter tip location.
“The addition of VasoNova’s technology allows Teleflex to expand our vascular access product offerings and add real-time catheter tip positioning capability to our portfolio that is designed to permit clinicians to confirm central venous catheter location potentially without the need for an X-ray,” said Jeffrey P. Black, Chairman and Chief Executive Officer of Teleflex. “We welcome the VasoNova employees to the Teleflex family and look forward to working with them to expand the presence of VasoNova’s technology in the marketplace.”
Paul Molloy, President and Chief Executive Officer of VasoNova added, “VasoNova’s VPS™ technology is the first real-time intra-vascular catheter navigation technology that does not require external metal detectors or viewing screens, nor subjective interpretation of ECG signals. The combination of the VasoNova™ VPS™ technology and Teleflex’s world-class vascular access product offerings are highly synergistic.”
Under the terms of the agreement, Teleflex has acquired VasoNova for an upfront payment of $25 million and will make additional payments of between $15 million and $30 million based upon the achievement of certain regulatory and revenue targets over the next three years. The combination with VasoNova is expected to be accretive to both revenue and earnings by year-end 2011. Teleflex will report the VasoNova business as part of the vascular access product line in its Critical Care division.
About Teleflex Incorporated
Teleflex is a global provider of medical technology products that enable healthcare providers to improve patient outcomes, reduce infections and support patient and provider safety. Teleflex, which employs approximately 12,800 people worldwide, also has niche businesses that serve segments of the aerospace and commercial markets with specialty engineered products. Additional information about Teleflex can be obtained from the company’s website at www.teleflex.com.
Simpson Thacher & Bartlett LLP provided legal services to Teleflex.
VasoNova is a privately held company based in Menlo Park, California. Vasonova’s VPS™ technology is the first real time intra-vascular catheter navigation technology that does not require external metal detectors or viewing screens, nor subjective interpretation of ECG signals, and is capable of confirming precise catheter tip location using sophisticated anatomical location identification algorithms embedded in its technology. These location signatures are identified utilizing highly specific Doppler ultrasound characteristics combined with other patient data. VPS™ is compatible with all commonly used PICC and CVC catheters.
Investors include CMEA Capital; California Technology Ventures LLC; Research Corporation Technologies; Arboretum Ventures; Aphelion Capital and Coronis Medical Ventures LLC. Gravitas Healthcare LLC acted as financial advisor and Wilson Sonsini Goodrich & Rosati provided legal services to VasoNova.
This press release contains forward-looking statements, including, but not limited to, statements relating to our ability to expand VasoNova’s technology in the marketplace and our expectation that VasoNova will be accretive to both our revenue and earnings results by year-end 2011. Actual results could differ materially from those in the forward-looking statements due to, among other things, conditions in the end markets we serve; customer reaction to the acquisition; unanticipated difficulties, expenditures and delays in complying with government regulations applicable to our businesses, including unanticipated delays, costs and difficulties in connection with obtaining 510(k) clearance from the FDA to expand the uses for which VasoNova’s products may be marketed; changes in the reimbursement practices of third party payors; the impact of government healthcare reform legislation; changes in general and international economic conditions; and other factors described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.