Tuesday, November 23, 2010

Medtronic (NYSE:MDT) Acquiring All of Ardian

Medtronic Inc. (NYSE:MDT) announced later Monday they're going to acquire the rest of Ardian they don't own, which is 89 percent of the company.

They will reportedly pay $800 million in cash for Ardian, along with revenue-based milestones through 2015.

Ardian is primarily developing a hypertension device used to kill nerves close to the kidney.

Sean Salmon, vice president for Medtronic’s coronary and peripheral business, said that the technology of Ardian is “one of the most exciting growth markets in medical devices.”

Even so, it'll take some time for this to benefit Medtronic, as it's struggling to generate significant growth, as there they don't have much in the pipeline to look forward to. In that sense this is a good acquisition for the long term.

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