Japanese medtech company Olympus has agreed to acquire South Korea-based medical device company Taewoong Medical for a total of around $370m in cash.

Taewoong manufactures medical devices such as gastrointestinal (GI) metallic stents, which help clear occlusions or strictures caused by cancer or other diseases.

Under the terms of the agreement, the Korean medical device maker will receive $255.5m at closing and up to $114.5m as potential future milestone payments.

The transaction is expected to be completed by 30 June 2023, subject to certain customary closing conditions.

Taewoong Medical president and CEO Kyong-min Shin said: “For over three decades, Taewoong Medical has been a leading manufacturer of GI stents, renowned for its innovative technology and diverse product range.

“Our company has a robust market presence in Korea, Japan, and Europe, and exports to 86 countries worldwide.

“Moving forward together with Olympus, Taewoong Medical will focus its capabilities to provide medical professionals and patients with superior products and services through continuous investment in R&D and manufacturing technology.”

Taewoong offers various medical devices, including metallic GI stents intended for the treatment of the biliary tract, oesophagus, colon, and duodenum.

Its metallic stents are said to combine strong radial force with high flexibility, to conform with the shape of anatomies such as biliary tracts and the oesophagus.

The metallic GI stents, which are less likely to buckle even if they are curved, would reduce the risk of restenosis.

Taewoong offers a wide range of high-quality stents with unique design and technology capabilities, to help healthcare professionals use minimally invasive treatment.

According to Olympus’ medical business strategy announced in December 2021, the company is targeting GI as one of its key disease states.

With the acquisition, the company adds Taewoong’s medical devices to its product portfolio to become a comprehensive provider of several GI solutions in the market.

Olympus intends to procure and execute investment and further expand its capabilities through synergies with the products and technologies of acquired companies.

Olympus therapeutic solutions division global head Gabriela Kaynor said: “Olympus’ Endotherapy Division is committed to providing a full portfolio of clinically differentiated technologies aimed at treating patients who suffer from GI disease, and with the acquisition of Taewoong Medical, this further demonstrates our commitment to this critical segment of our business.

“Taewoong Medical has developed a full portfolio of GI metal stents that will immediately enhance our already robust offering of GI devices.

“I’m proud to welcome Taewoong Medical’s employees, and their commitment to the field of GI endoscopy to the Olympus’ Therapeutic Solutions Division.”