St. Jude Medical plans to pay up to $331 million to buy Endosense, a Swiss based medical technology company, according to Bloomberg News. The closely held Geneva-based company makes a catheter that can tell doctors whether the correct amount of force is being applied to the heart wall during a procedure to treat irregular heartbeat.
Yahoo! Finance reported that that the Little Canada-based maker of defibrillators and pacemakers made an all-cash deal for Endosense, with an initial payment of approximately 159 million Swiss francs ($170 million USD). It may include additional payments of as much as $161 million if Endosense's TactiCath ablation catheter meets regulatory targets set by the Food and Drug Administration.
The deal bolsters St. Jude's portfolio of products that treat patients with cardiac arrhythmias, the company said in a statement.
The Wall Street Journal's MarketWatch notes that St. Jude will pay for the deal using available cash from outside the United States. Except for acquisition-related expenses, this acquisition does not impact St. Jude Medical’s outlook for 2013 consolidated earnings per share.. Shares of St. Jude closed at $51.47 on Friday, and the stock has climbed about 42 percent so far this year.