Apica Cardiovascular Ltd., an Atlanta-born medical device startup that operates out of Ireland, has been acquired by California-based Thoratec Corp. for $75 million.
Apica began in 2009 with technological innovations for heart surgery at the Georgia Institute of Technology and Emory University.
A year later, the company moved its headquarters overseas to the medical-device hub of Galway after receiving financing from Ireland-based venture capital firm Seroba Kernel Life Sciences Ltd.
“We are delighted with the successful outcome of the investment in Apica,” said Seroba Kernel partner Daniel O’Mahony. “It validates our model of taking leading-edge technologies from the U.S., where there is a shortage of finance, and implanting them in Ireland whilst retaining links to the U.S. innovators and clinicians.”
Thoratec will oversee development and commercialization of Apica’s technology, which it sees as complementary to its own HeartMate product line for heart surgeries.
The deal calls for Thoratec to pay $35 million upfront in cash with the remaining $40 million expected in payments on future clinical and sales milestones.
In addition, Thoratec approximates $3 million this year in added expenses from research and development and $6 to $7 million next year – costs that the company expects to recover through long-term tax benefits from the acquisition.
The Pendleton Group is the presenting sponsor of Global Atlanta's Economic Development Channel. Subscribe here for monthly Economic Development newsletters.