US medical technology firm Edwards Lifesciences has agreed to acquire Israel-based Valtech Cardio for about $690m.
Valtech developed the Cardioband system for transcatheter repair of the mitral and tricuspid valves.
Under the deal, Valtech will receive $340m in stock and cash at closing, as well as up to $350m in additional pre-specified milestone-driven payments over the next ten years.
Subject to customary closing conditions, the deal is expected to complete in early 2017.
Valtech will spin off its early-stage transseptal mitral valve replacement technology program, prior to the close of the deal. Edwards will hold an option to acquire the program and its associated intellectual property.
In addition, Edwards' board of directors have approved new share repurchase program to purchase an additional $1bn of the firm’s outstanding common shares.
Through using transcatheter approach, the Cardioband system aggregates reconstruction implant that is similar to the surgical annuloplasty mitral valve repair device.
The system, which uses a catheter inserted into the femoral vein, will be delivered through transseptal approach across the septum of the heart.
Last year, Cardioband transseptal mitral repair system secured CE mark approval to be distributed in European countries.
The company also started a CE mark trial for the tricuspid application of a similar version of this device. It is intended to reduce tricuspid regurgitation.
Cardioband system has not received approval to market in the US.
Edward Lifesciences chairman and CEO Michael Mussallem said: "As we continue to pursue multiple therapies to address the diverse needs of patients affected by heart valve disease, we saw an important opportunity to incorporate Valtech's technologies into our comprehensive heart valve repair and replacement portfolio.
“We are very pleased with the progress and future prospects of the multiple internal programs we have underway, and we believe the addition of Valtech's talented team and mitral and tricuspid technologies will present even more opportunities to help patients."
Image: Cardioband system will be used for transcatheter repair of the mitral and tricuspid valves. Photo: courtesy of Edwards Lifesciences Corporation.