US-based AtriCure has completed the previously announced acquisition of Endoscopic Technologies d/b/a Estech, which develops and markets devices that enable heart surgeons to perform a variety of traditional and minimally invasive medical procedures.
AtriCure president and CEO Mike Carrel said the company is pleased to complete the acquisition of Estech, and it welcomes the team to AtriCure.
"This transaction provides substantial benefits to AtriCure and strengthens our leadership position in the atrial fibrillation market; we are excited about the opportunities that our combined businesses will bring to our customers," Carrel added.
AtriCure believes that the transaction will increase sales and marketing expense as well as research and development expenditures in order to accelerate clinical development and commercial sales of the combined product portfolio.
While these expenses will increase on absolute dollar basis, AtriCure expects these expenses to decrease as a percentage of sales beginning in 2015. AtriCure expects the transaction to be dilutive to earnings in 2014 and accretive in 2015 and beyond.
Piper Jaffray is acting as financial advisor, and Keating Muething & Klekamp PLL is serving as legal counsel, to AtriCure. Leerink Swann is acting as financial advisor, and DLA Piper LLP serving as legal counsel to Estech.