Medtronic plc (NYSE:MDT) on Tuesday announced it will exercise its option to acquire CathWorks, a privately held medical device company based in Israel.
The acquisition is valued at up to $585 million with potential undisclosed earn-out payments post-acquisition.
CathWorks is focused on coronary digital health.
The intent to acquire CathWorks follows a 2022 strategic partnership with a co-promotion agreement for the CathWorks FFRangio System in the U.S., Europe, and Japan, where it is commercially available.
Coronary physiology, most commonly assessed using fractional flow reserve (FFR), helps physicians identify which lesions truly cause ischemia.
Using a combination of artificial intelligence (AI) and advanced computational science, the CathWorks FFRangio System is an angiography-derived system that delivers FFR values along the entire coronary tree.
In addition, it provides intraprocedural optimization tools, including assessment of the physiological impact of lesion treatment and interactive sizing tools to measure lesion dimensions.
This enables appropriate revascularization for patients who need it, while avoiding unnecessary percutaneous coronary intervention (PCI) in those who do not.
The deal is pending clearance from the United States Federal Trade Commission (FTC). This phase is expected to be completed by the end of Medtronic’s fiscal year 2026.
At the date of the acquisition closing, CathWorks will then become a part of Medtronic. Medtronic and CathWorks will continue to operate independently until the deal is closed.
Financial Highlights
The acquisition is expected to be immaterial to Medtronic’s fiscal year 2027 GAAP and adjusted earnings per share and neutral to accretive thereafter.
In January, a William Blair analyst upgraded Medtronic, citing several new and ramping launches.
In December 2025, the U.S. Food and Drug Administration (FDA) said it is aware that Medtronic notified customers to remove certain Left Heart Vent Catheters from use and sale, citing safety concerns.
The catheter is used to vent the left heart during cardiopulmonary bypass procedures lasting up to six hours.
MDT Price Action: Medtronic shares were up 1.86% at $104.62 at the time of publication on Tuesday, according to Benzinga Pro data.
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