LivaNova has inked a pact to sell its Cardiac Rhythm Management (CRM) business to its joint venture partner, MicroPort Scientific. The all-cash deal is slated to close in the second quarter of 2018.
The London-based company has been seeking a buyer for its CRM unit since at least September. The business develops and markets devices for the diagnosis and treatment of heart failure and cardiac arrhythmias. These include defibrillators, pacemakers and cardiac resynchronization therapy devices.
Cardiac Surgery and Neuromodulation make up LivaNova’s two other businesses. CRM has a strong presence in Europe and Japan, posting $249 million in net sales for fiscal 2016. But LivaNova is letting the business go, as it no longer fits in with the direction the company is going.
“The CRM business franchise is a global business and strong regional player with attractive assets, a robust pipeline and growth potential,” said LivaNova CEO Damien McDonald when the company announced is plans for the CRM business. “However, it is no longer a strategic fit within LivaNova’s portfolio.”
LivaNova teamed up with MicroPort on a joint venture in 2014, to market its CRM devices in China. The duo has made steady progress since then, notching a China FDA approval for LivaNova’s Rega pacemaker, which became one of the smallest pacemakers available in China.
“With this divestiture, we are building the right foundation,” McDonald said in a statement. “We are focusing our portfolio on businesses that contribute to our growth and drive shareholder value. In addition to the implementation of other initiatives, completion of this milestone will allow LivaNova to improve margins, drive profitability and deliver on our commitments to shareholders.”