Medical technologies provider Teleflex has agreed to acquire US-based medical device manufacturer Z-Medica for an upfront cash payment of $500m.

As per terms of the deal, Z-Medica will also secure an additional $25m from Teleflex based on the achievement of certain commercial milestones.

Based in Wallingford of Connecticut, Z-Medica is engaged in the development and marketing of advanced haemorrhage control products.

Z-Medica president and CEO Eric Compton said: “Today’s announcement is a recognition of our focus on patient outcomes and the hard work and dedication of the entire Z-Medica team.

“I want to especially thank Linden Capital Partners and DW Healthcare Partners, who supported Z-Medica to expand from its roots in the military to become a true global healthcare and hospital focused business.”

Z-Medica offers its products under three main brands  

Z-Medica provides its bleeding control solutions under three brands such as QuikClot, Combat Gauze and QuikClot Control+, which use an advanced technology that consists of gauze impregnated with kaolin. The company’s technology stimulates and boosts the body’s natural clotting ability.

QuikClot Control+ is said to be the first hemostatic dressing designated for temporary control of class III or class IV bleeding in the internal organ space. Z-Medica manufactures its QuikClot brand of products in the US.

The company’s products are currently used in the trauma surgery, EMS, military, emergency department, and interventional segments.

Z-Medica supplies haemostatic products to hospitals, militaries, law enforcement, first responders and consumers across the globe.

Teleflex chairman, president and CEO Liam Kelly said: “The acquisition of Z-Medica, an industry leading provider of hemostatic devices, enables Teleflex to leverage strength in the hospital, EMS, and military call points, with differentiated products that complement the EZ-IO and EZPLAZ product portfolio.”

Subject to customary closing conditions, the deal is expected to be completed in the fourth quarter of this year.

Guggenheim Securities is serving as financial advisor to Teleflex, while Holland & Knight is acting as legal counsel. Truist Securities is serving as financial advisor to Z-Medica, while Kirkland & Ellis is acting as legal counsel.

In June this year, Teleflex enroled the first patient in a clinical study that will evaluate performance of Teleflex coronary guidewires and specialty catheters.