HeartWare Cancels $860 Million Valtech Cardio Acquisition

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

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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 specializes in transcatheter heart valve technologies for patients suffering from valvular insufficiency. HeartWare specializes in non-invasive treatment of various cardiac diseases.

The acquisition of Valtech was the biggest in Israeli high tech in 2015, making 2015 total for deals and exits to $9.02 billion, the highest in the last three years – at 16 percent above 2014 in terms of exit proceeds.

 

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HeartWare International, Inc. (Nasdaq: HTWR), has entered into a definitive agreement to acquire privately held company  Valtech Cardio Inc. in a share deal, with no cash involved. Valtech specializes More..

 

According to announced in September almost the entire acquisition price would be paid in shares, with practically no cash.   HeartWare already owned 3.6 percent of Valtech at the time the acquisition was announced.

The American company said 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 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.

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