Merit Medical to purchase Cook Medical’s lead management portfolio for $210M
Two U.S. healthcare technology companies have announced a significant transaction that could shake up the country’s electrophysiology market.
Merit Medical Systems, a Utah-based medical device company founded in 1987, has agreed to purchase the end-to-end lead management portfolio of Indiana-based Cook Medical for approximately $210 million. This includes all medical devices and accessories used to manage leads in patients who need a pacemaker or implantable cardioverter-defibrillator (ICD).
The transaction will be funded with a mix of cash on hand and borrowings. It is expected to close during the fourth quarter of 2024.
Merit estimates that the assets it has agreed to acquire generated close to $37 million in revenue for Cook Medical in 2023. Going forward, the company believes those same offerings will bring in approximately $40 million in additional annual revenue beginning in 2025.
“We believe this transaction will strengthen our fast-growing, high-margin electrophysiology and cardiac rhythm management (CRM) business with the addition of differentiated products and an established commercial infrastructure,” Fred P. Lampropoulos, Merit’s chairman and chief executive officer, said in a statement.
Lampropoulos also emphasized that the move should help Merit’s share of the electrophysiology and CRM markets in the U.S. and beyond.
“Specifically, beginning in fiscal year 2025, the addition of Cook’s lead management business positions Merit to represent more than $100 million in combined annualized electrophysiology and CRM revenue serving the global cardiac intervention market,” he said.
A closer look at Cook Medical’s lead management portfolio is available on the company’s website. It includes the Evolution RL Controlled-Rotation Dilator Sheath Set, SteadySheath Evolution Tissue Stabilization Sheath, One-Tie Compression Coil and a variety of other lead-related devices.
Michael has more than 16 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.