Medtronic To Acquire RF Surgical Systems In Latest In String Of Acquisitions
By Christine Kern, contributing writer
Move positions Medtronic well to dominate in medical technologies field.
Medtronic has announced it plans to acquire RF Surgical Systems, the California-based manufacturer of Assure Detection System X, for $235 million. The sale is the latest in a string of acquisitions this year that position Medtronic well to dominate the medical technologies field.
Assure Detection System X helps prevent sponges, gauze, and towels from being left inside patients during surgery by using low radio frequency signals on radio tags to track them. The system is currently used by more than 4,500 operating room, trauma, and labor and delivery suites in the U.S., John Barnhill, vice president of marketing for RF Surgical told the StarTribune.
Objects left inside patients potentially cause complications, with up to 4,000 cases annually in the U.S. according to NoThing Left Behind, an organization that strives to improve surgical patient safety.
“Improving patient safety and outcomes is our daily focus, which directly aligns with the RF Surgical technology, a simple and cost-effective solution to avoidable complications in surgical procedures,” said Chris Barry, a Medtronic senior vice president, in a statement.
“We are pleased to be joining the Medtronic team as their long-standing commitment to patient safety closely aligns with RF Surgical” said John T. Buhler, CEO of RF Surgical, Inc. “As we strive to make the RF Surgical technology the global standard of care, we look forward to the innovation opportunity afforded by our combined capabilities.”
The acquisition is part of Medtronic’s “economic value strategy,” in which they are focused on “leading the shift to value based healthcare, which rewards those who can deliver quality healthcare to more people at the most affordable cost.”
The deal is expected to be finalized in August 2015, pending regulatory approvals.
Medtronic’s other recent acquisitions include the $9-billion deal with Covidian in January; the purchase of medical-device manufacturer Aptus Endosystems (for $110 million); Netherlands-based Diabeter, a youth diabetes clinic and research center; and magnetic hearing implants producer Sophono.
RF Surgical will be part of the surgical solutions division within Medtronic’s minimally invasive technologies group. The deal is expected to close next month.