Medical technology company Intersect ENT has signed an agreement to acquire electromagnetic surgical navigation solutions provider Fiagon AG Medical Technologies for €60m in cash.

As per terms of the deal, Intersect ENT will initially pay €15m at the time of the closing, as well as €15m annual payments for the subsequent three years.

Established in 2007, Fiagon is engaged in the development and manufacturing of advanced surgical navigation equipment using its tip-tracked technology.

Fiagon Group president and CEO Dr Kai Desinger said: “The combination of Intersect ENT’s compelling product offerings coupled with its deep commercial leadership expertise and impressive sales force offers a unique opportunity for us to jointly leverage our core innovation and commercialization competencies.”

Fiagon has FDA 510(k) clearance for its navigable sinuplasty balloon

In August this year, Fiagon secured 510(k) clearance from the US Food and Drug Administrtaion (FDA) for its navigable sinuplasty balloon.

The combined portfolios of both companies will enable Intersect ENT to provide a range of surgical solutions across the sinusitis care continuum irrespective of site of care.

Fiagon’s navigation system is suitable for use in both routine and complex ENT procedures. It will help surgeons to track the full range of instruments deployed during a functional endoscopic sinus surgery (FESS) procedure.

The company’s instruments are tip-tracked that helps to avoid calibration. The instruments and sinuplasty balloon can be bent and adjusted to help ENT surgeons to accommodate various anatomical structures.

Intersect ENT president and CEO Thomas West said: “Fiagon represents a strategic technology acquisition for Intersect ENT that immediately expands our portfolio of ENT product offerings, complements our existing PROPEL and SINUVA sinus implants and helps extend our geographic reach.”

Subject to customary closing conditions, the deal is expected to be completed within one month.

Goldman Sachs is serving as exclusive financial advisor to Intersect ENT, while Cooley and Fieldfisher (Germany) are acting as its legal counsel. Oppenheimer is serving as financial advisor to Fiagon, while Morrison & Foerster is acting as its legal counsel.

In February 2017, Intersect ENT secured FDA approval for its Propel Contour steroid releasing sinus implant.