Healthcare firm BTG has signed an agreement to acquire cryoablation products provider Galil Medical for around $84.5m (£58.3m).
The deal will also include the regulatory and commercial milestone payments of up to $25.5m (£17.6m) for the period ending 31 December 2018.
Based in Arden Hills of Minnesota, Galil Medical is engaged in the manufacturing and marketing a portfolio of cryoablation systems and needles.
In the US, the company’s products are used for the treatment and palliative care of kidney and other cancers. The company also produces products for use in urology.
Cryoablation systems use compressed argon gas to produce very low temperatures. When the gas passes through the needle, the tip of the needle will be cooled to form an ice ball, which absorbs the tumour and destroys the tissue.
Galil manufactures different types of needles to produce a freeze zone, which corresponds with the tumour size and shape, helping in avoiding the damage of adjacent tissue.
The company is also carrying out two clinical studies, which are nearing completion to receive US regulatory clearance for use in lung metastases and bone metastases.
BTG CEO Louise Makin said: "This bolt-on acquisition builds on our leadership in Interventional Oncology, expanding our portfolio of minimally invasive therapies with the leading technology in the cryoablation of kidney cancer.
"It also offers significant pipeline opportunities, including lung and bone metastases if regulatory approvals are granted."
The deal is expected to be completed by the end of June this year.
BTG produces products to treat liver tumours, advanced emphysema, severe blood clots and varicose veins.
Image: BTG to acquire US-based Galil Medical. Photo: courtesy of stockimages / FreeDigitalPhotos.net.