AngioDynamics ($ANGO) is back on the buyer's block, agreeing to pay $55 million over 5 years for Vortex Medical, maker of devices to remove clots from clogged vessels.
Vortex's lead product is the AngioVac, consisting of disposable parts that can drain, filter and reinfuse blood for up to 6 hours, getting rid of undesirable intravascular materials. The device is 510(k) cleared in the U.S., and AngioDynamics says a CE mark is pending.
Under the deal, Vortex is guaranteed $55 million over the first 5 years--$15 million up front and at least $8 million a year after that, depending on sales. For the 5 years after, Vortex is eligible for further earn-out payments based on AngioVac's performance.
AngioDynamics CEO Joseph DeVivo said the company believes AngioVac can pull in $50 million in annual revenue within 5 years, becoming the gold standard for thrombus removal. "Unlike currently available pharmacomechanical alternatives, the minimally invasive, en-bloc removal of intravascular material has the potential to reduce the risk of complications associated with major open surgery, internal bleeding and clot fragmentation," DeVivo said in a statement.
The Albany, NY-based AngioDynamics specializes in vascular access devices, and it expanded its reach earlier this year with a $372 million buyout of rival Navilyst, absorbing that company's peripheral vascular and oncological surgery devices in the process. After a 2011 fraught with boardroom shakeups, DeVivo has said AngioDynamics will continue to grow its business through M&A.
The company expects the Vortex buy to close by the end of this month, and AngioDynamics projects the deal will add $1 million to 2012 sales figures and $10 million by 2014.
- here's the release