Medical device maker Medtronic said on Tuesday it would buy U.S.-based Scientia Vascular in a deal valued at $550 million, expanding its line-up of products used in stroke care.
Shares of the company were down more than 1% in early trading.
Scientia, based in Salt Lake City with about 310 employees, makes guidewires and catheters used to navigate blood vessels in the brain.
These guidewires and catheters can be seamlessly integrated into Medtronic’s existing suite of neurovascular products, the medical device maker said.
The deal positions Medtronic with a full suite of products and supports procedures across both hemorrhagic and acute ischemic stroke, said Linnea Burman, senior vice president and president of Medtronic’s Neurovascular business.
Medtronic expects the deal to close in the first half of fiscal 2027.
Analysts at Leerink Partners said the deal supports Medtronic’s broader plan to lift growth through acquisitions and reflects confidence in Scientia’s underlying technology.
Evercore ISI said the acquisition is a well-fitting tuck-in that strengthens Medtronic’s stroke portfolio and aligns with its existing neurovascular devices.
The company also expects the deal to be minimally dilutive to its adjusted earnings in 2027 and accretive thereafter.
Medtronic added that there could be potential earn-out and milestone payments post-acquisition, but did not disclose any further details on the same. (Reporting by Sahil Pandey in Bengaluru; Editing by Jonathan Ananda)
