Medical technology leader Medtronic Inc, Minneapolis, MN, has entered into definitive agreements to acquire two companies that specialize in advanced energy surgical technologies, marking a targeted effort to dominate innovation in this niche of the medical device market. Integrating the proprietary innovations of these two companies will increase Medtronic’s role in advanced energy products, and both companies being acquired expect to leverage Medtronic’s global presence to the advantage of their brand names.

Described by Medtronic as an emerging field, advanced energy surgical technology consists of surgical instruments and represents an advancement in radiofrequency surgical technologies, such as the proprietary PlasmaBlade product line from Peak Surgical Inc, Palo Alto, CA. PlasmaBlade is a family of disposable cutting devices with unique insulation technology that provides both the exacting control of a scalpel and the bleeding control of electrosurgery with minimal tissue damage. The products have been cleared for use in ear, nose, and throat, plastic reconstructive, orthopedic, and general surgery applications.

In addition to Peak’s PlasmaBlade line of cutting devices, Medtronic gains Peak’s Pulsar Generator technology, which supplies pulsed plasma radiofrequency energy to the PlasmaBlades to form the complete Peak surgery system. Used in general and reconstructive surgery applications, as well as ENT and orthopedic surgeries, the system also is cleared for use in gynecologic, arthroscopic, spinal, and neurological procedures in the United States. “Medtronic’s global reach will allow more patients and hospitals to benefit from the proven clinical and economic benefits associated with our PlasmaBlade technology,” says John Tighe, president and CEO of Peak Surgical Inc.

“Peak’s advanced energy cutting technologies complement our existing surgical product line, strengthening our core offerings and enabling us to offer surgeons and patients a full spectrum of leading products across the entire surgical continuum,” says Chris O’Connell, executive vice president and president of Medtronic’s restorative therapies group.

The deal does more than help Medtronic fulfill its company mission of alleviating pain, restoring health, and extending life; it also extends the company’s offerings and expertise in the spectrum of surgical cutting technologies to better serve doctors and patients. The company has been investing in the surgical field, and Peak Surgical, for some time, and currently holds an ownership stake in Peak. Although the total value of the transaction is $120 million, net of this ownership stake the transaction value is approximately $105 million. According to Medtronic, Peak’s revenue is annualizing at approximately $20 million and showing signs of continued rapid growth. To further push its own growth in the surgical technology market, Medtronic has signed an additional agreement to acquire Salient Surgical Technologies, Portsmouth, NH, which also specializes in advanced energy surgical technology, specifically advanced haemostatic sealing products.

Although the deal with Salient is still subject to governmental and regulatory review, it underscores Medtronic’s determination to be a leading provider of the most cutting-edge surgical tools in such fields as plastic and reconstruction applications, electrophysiology, oncology, and large bone orthopedics.

Similar to the arrangement with Peak, Medtronic already holds an ownership stake of Salient. Salient’s revenue is annualizing at approximately $100 million and, while the total value of the transaction will be $525 million, net of this ownership stake, the transaction value is approximately $480 million, according to Medtronic. The core of the acquisition for Medtronic is Salient’s Aquamantys system and patented Transcollation technology, which can be used in such applications as haemostatic sealing of soft tissue and bone in orthopedic, spinal, open abdominal, and thoracic surgical procedures. The technology is designed to reduce blood loss and improve surgeon visualization.

“We are excited about this opportunity to bring our companies together and further broaden Medtronic Surgical Technologies’ portfolio of innovative surgical products to meet customer and patient needs worldwide,” adds O’Connell.

“Integrating the Salient Surgical Technologies organization will bring new applications to Medtronic Surgical Technologies’ current surgical therapy areas and expand the company’s opportunities in adjacent offerings, helping Medtronic serve new customers and better meet the needs of existing ones,” says O’Connell.

“Salient’s focus on improving patient outcomes and its commitment to having the best people in the medical device industry align perfectly with Medtronic’s mission and culture,” says Joseph Army, president and CEO of Salient. “We are excited about the opportunity to become part of the global leader in medical technology and look forward to leveraging Medtronic’s worldwide presence to make Transcollation technology the standard of care in advanced energy across the globe.”