Medtronic signs agreement to acquire Restore Medical

Medtronic has announced that it has signed a definitive agreement with Restore Medical to acquire the firm

Under the terms of the agreement, the total value of the transaction will be approximately $29 million (14.6 million pounds), with Medtronic paying $1.60 in cash for each share of stock in Restore Medical.

The transaction is expected to boost Medtronic earnings in the first full year after closing and is expected to be completed within 90 days.

Restore Medical owns the Pillar Palatal Implant System, which is a novel and minimally invasive implantable device used to treat snoring and mild to moderate obstructive sleep apnea, the soft palate component of sleep breathing disorders.

Bob Blankemeyer, president of the ear, nose and throat (ENT) business at Medtroni, said: “This acquisition will help deliver new growth for our ENT business by providing Medtronic with a proven office-based procedure in a very fast growing segment of the sleep market.

He added that the company can speedily leverage its strengths in distribution and marketing to enhance access for both patients and surgeons to the Pillar Palatal Implant System.

In February 2008, Medtronic announced the unanimous election of Victor Dzau, president and chief executive officer of the Duke University Health System, as an independent director on its board.