Israel's Valtech Sold for as Much as $1 Billion

Edwards Lifesciences agrees to pay $340 million up front for maker of system to repair heart valves

Valtech Cardioband Delivery system and implant
Valtech

In the second big sale this week of an Israeli medical-device firm, Edwards Lifesciences Corporation said Tuesday it has agreed to buy Valtech Cardio in a deal whose value could reach $1 billion.

The California-based company said it would pay $340 million in stock and cash up front, plus up to $350 million more in performance-based milestone payments over the next 10 years.

Before the sale’s completion, slated for early 2017, Valtech is to spin off its early-stage transseptal mitral valve replacement technology program. Edwards has an option to buy it. That could add $300 million to the deal, for a total of $1 billion.

On Sunday, sources said Kibbutz Degania Bet was close to selling its Degania Medical catheter business to the 3i investment fund for about $200 million.

The sale was a big comeback for Valtech, after HeartWare canceled its purchase of the company this year for $850 million, under pressure from shareholders.

Valtech has developed a system for transcatheter repair of the heart’s mitral and tricuspid valves. The company, which was founded in 2005, has 70 employees at its headquarters in Or Yehuda, near Tel Aviv, and 10 in Europe. It raised $70 million from investors including Peregrine Ventures, OXO Capital Valve Ventures and NGN Capital.