HeartWare cancels $860m Valtech Cardio acquisition

Amir Gross

HeartWare: Circumstances have changed since the agreement and we prefer to strengthen our existing business.

US company HeartWare is canceling its $860 million acquisition of Israeli company Valtech Cardio, announced by the companies in September 2015. The US company stated, "HeartWare finds itself in a different set of circumstances than when we first entered into the agreement." Despite the canceled acquisition, HeartWare will grant the Israeli company a $30 million loan convertible into shares.

Valtech's exit was the biggest in Israeli high tech in 2015, inflating the yearly total for deals and exits to the highest level in several years.

The two companies announced in September that almost the entire acquisition price would be paid in shares, with practically no cash. Following an investment, the US company already owned 3.6% of Valtech at the time the acquisition was announced.

HeartWare added that it preferred to use its resources to strengthen its existing business, rather than to acquire additional businesses, however complementary. The company said that talks with its shareholders showed that they preferred reinforcing its existing portfolio to adding Valtech's products.

Founded 10 years ago, Valtech specializes in transcatheter heart valve technologies for patients suffering from valvular insufficiency. HeartWare specializes in non-invasive treatment of various cardiac diseases.

Valtech has 50 employees at its R&D center in Or Yehuda. The company was founded by CEO Amir Gross, Yossi Gross, and Peregrine Ventures, which is managed by brothers Eyal and Boaz Lifshitz. The company began its operations in the Incentive incubator owned by Peregrine. Since its founding, Valtech has raised $70 million, mostly from foreign venture capital funds. Valtech's chairman is Lawrence Best, former CFO of Boston Scientific, another company specializing in treatment of cardiac diseases.

Published by Globes [online], Israel business news - www.globes-online.com - on January 28, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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