- Strengthens TE's Position in the Attractive Medical and Healthcare Markets;
- Expands TE's Product Portfolio and Expertise in Medical Applications
TE Connectivity Ltd. (NYSE: TEL), a world leader in connectivity, announced today that it has entered into a definitive agreement to acquire AdvancedCath for $190 million USD in cash.
AdvancedCath is a leading source of advanced catheter systems, with estimated 2015 revenues of $60 million. The company combines best-in-class technologies with industry-leading expertise in lifesaving therapy areas.
The acquisition complements and significantly expands TE's connectivity and sensor position in the attractive, high-growth interventional space of the medical market. Further, it will allow TE to provide more complete integrated solutions to customers.
TE's Medical business designs and manufactures connectors, sensors and components for use in surgical, interventional catheter, imaging, diagnostic and therapeutic healthcare applications. Upon the completion of the transaction, the AdvancedCath team will report in through TE's Medical business unit, which is part of TE's Industrial Solutions segment.
"The acquisition of AdvancedCath expands TE's Medical business and positions us to be a leading provider of connectivity and sensor solutions in the high-growth medical device market," said Terrence Curtin, president, TE Connectivity Industrial Solutions segment. "Today's OEMs are developing innovative procedures that are minimally invasive to improve outcomes and quality of care. The combination of TE's connectivity and sensor solutions with AdvancedCath's expertise in the medical device market provides customers with an unmatched set of capabilities and technologies that enable future innovations and medical advances. We look forward to welcoming AdvancedCath's talented team to TE."
"We can now offer customers an unmatched combination of sensor, material science, electrical and biomedical technologies and a single source of manufacturing expertise for advanced medical devices," said Randall Sword, CEO, AdvancedCath. "With TE's geographic footprint, we can provide better support to our global customers as they progress through development, clinical trials and volume manufacturing."
Strategic Rationale:
Establishes TE's Medical business as a leading provider of highly engineered connectivity and sensor solutions for OEMs in the attractive and growing medical device market.
Expands TE's opportunity in the interventional device outsourced manufacturing market, which is growing at 10 percent annually.
Strengthens TE's position in the medical device market by leveraging TE's expertise in engineering and manufacturing with AdvancedCath's strong reputation and expertise in the healthcare and medical device market.
Transaction Closing:
The transaction is subject to the receipt of regulatory approval and other customary closing conditions. The transaction is expected to close in late March, 2015.
