LivaNova PLC announced it has entered into an agreement to acquire TandemLife, a privately held company focused on advanced cardiopulmonary temporary support solutions (“TandemLife”). The Pittsburgh-based company offers four product systems, all built around a common pump and controller. These systems, which include ExtraCorporeal Life Support (“ECLS”) and Percutaneous Mechanical Circulatory Support (“pMCS”), are complementary to LivaNova’s strong offerings in cardiac surgery.
“We are pleased to enhance our cardiac surgery product offerings with TandemLife’s complete portfolio of advanced cardiopulmonary support products,” said Damien McDonald, LivaNova’s Chief Executive Officer. “Use of ECLS and pMCS systems is on the rise, and technological advancements have made products easier to use and more efficacious, leading to growth in the number of hospitals capable of performing these advanced procedures. We will leverage our customer base and global infrastructure to increase penetration in the U.S. and to expand geographically.”
With TandemLife, hospitals can deploy a versatile platform consisting of a single pump and controller upon which all of the company’s products operate. This simple platform creates ease of use for clinicians and offers mobility for patients. Each TandemLife system may include a pump, an oxygenator and cannulae for comprehensive, acute cardiac, pulmonary or cardiopulmonary care. The TandemLife® system provides cardiopulmonary support through veno-arterial ECLS. For patients experiencing respiratory dysfunction, TandemLung® provides pulmonary support through veno-venous ECLS. ProtekDuo® and TandemHeart® provide advanced pMCS for Right Heart Support and Left Heart Support, respectively.
“The TandemLife systems allow hospitals to offer a comprehensive platform, which controls costs without sacrificing quality of care,” said Alistair Simpson, LivaNova’s General Manager of its Cardiac Surgery business franchise. “These product offerings will enrich LivaNova’s cardiopulmonary temporary support capabilities.”
Since inception in 1996, TandemLife products have been used in more than 5,000 patient cases. TandemLife is currently maintaining a multicenter clinical registry (“THEME”) and is sponsoring studies for its main indications.
“We have a history of delivering significant capabilities and benefits to save and improve the lives of critically ill patients,” said John Marous, TandemLife’s President and Chief Executive Officer. “We look forward to continuing to develop simple and effective life support solutions as LivaNova.”
LivaNova has agreed to pay up to $250 million for TandemLife. Upfront costs total $200 million, with up to $50 million in contingent considerations based on regulatory milestones. The deal is projected to be modestly accretive in 2018 and is expected to close in the first half of 2018 (subject to approvals and other customary closing conditions).
