Surgical and medical instrument manufacturing firm Teleflex has agreed to acquire Standard Bariatrics, a US-based firm that commercialised a new powered stapling technology for bariatric surgery.

Under the terms of the agreement, Teleflex will purchase Standard Bariatrics for an upfront cash payment of $170m with a further payment of up to $130m will be due if certain commercial goals are met.

The transaction is expected to be finished early in the fourth quarter of 2022, subject to the usual closing conditions, which include receiving specific regulatory approvals.

Standard Bariatrics’ Titan SGS offers surgeons the longest continuous staple cutline of 23cm to fulfil unmet demands in sleeve gastrectomy.

It enables users to produce a more regular and symmetrical anatomy of the sleeve pouch, positioning their patients for the best results.

The Titan SGS long staple line allows surgeons to design and place staples in one firing, eliminating differences commonly associated with the use of numerous overlapping short-cartridge staple firings.

Higher burst pressures indicate that the design may also lead to a more secure staple line and less likelihood of leaks, said Teleflex.

Teleflex chairman, president and chief executive officer Liam Kelly said: “Teleflex’s strategy is to invest in innovative products and technologies that can meaningfully enhance clinical efficacy, patient safety and comfort, reduce complications, and lower the overall cost of care.

“The acquisition of Standard Bariatrics adds an exciting and differentiated product serving the large and growing sleeve gastrectomy market, which we estimate to be approximately 120,000 procedures annually in the US.

“In addition, the deal enables Teleflex to leverage our strength in our existing bariatric surgeon call point, with a differentiated product that complements many of our key surgical products, including our ligation portfolio, MiniLap Percutaneous Surgical System and Weck EFx Fascial Closure Portfolio.”

The company intends to use borrowings from its revolving credit line to fund the transaction at closing.