US-based AngioDynamics, a developer of minimally invasive medical devices, has entered into an agreement to buy Microsulis Medical's microwave ablation technology for coagulation of larger soft tissue ablations.
The CE-marked and FDA-approved Accu2i pMTA microwave ablation system, which is implanted under the skin, uses single, high-power, high-frequency 2.45 GHz saline-cooled needle for coagulation.
AngioDynamics said the purchase option has been available since March 2012, as part of a $5m equity investment in Microsulis, which provided exclusive distribution rights for marketing and selling microwave ablation system in all markets outside the US from May 2012 until the end of 2013.
As part of the transaction, AngioDynamics will pay $10m in cash as upfront payment, and make $5m cash payment subsequently at the end of 2013.
AngioDynamics president and chief executive officer Joseph DeVivo said the acquisition strengthens the company's position in the $250m global tissue ablation market.
"With the addition of microwave, we expect sales to grow an average of 20% annually over the next three years at margins that are nicely accretive to our overall business," DeVivo added.
AngioDynamics is planning to introduce the second generation Accu2i pMTA applicator in the US, after the transaction closes by the end of January 2013.