Haemonetics to acquire vascular-device maker Cardiva Medical for $475M up front

Haemonetics Corp. is acquiring privately held medical-device maker Cardiva Medical Inc. for an up-front payment of $475 million.

Santa Clara, Calif.-based Cardiva develops vascular closure devices — used for closing common femoral artery access sites made during heart surgery. Cardiva's products include two catheter-based vascular closure devices: Vascade and Vascade MVP.

Under the deal, which is expected to close in the first quarter of 2021 and is subject to closing conditions, Boston-based Haemonetics could pay up to an additional $35 million to Cardiva contingent on sales growth.

The acquisition expands Haemonetics' hospital offerings in the interventional cardiology and electrophysiology markets and aligns with the company's innovation agenda, said Haemonetics President and CEO Chris Simon in a Jan. 20 press release.

The acquisition is expected to generate revenue of between $65 million and $75 million in the first fiscal year.

Haemonetics is a healthcare supplies company that provides hematology products and solutions. It offers automated plasma collection devices, related disposables and software.

The company plans to fund the acquisition through cash, an existing revolving credit facility and an additional $150 million term loan.

Moelis & Co. LLC is the financial adviser to Haemonetics, with DLA Piper serving as legal adviser. J.P. Morgan Securities LLC is the financial adviser to Cardiva, while Cooley LLP is legal adviser.