Medtronic said Friday that it has closed on a deal to acquire California-based Intersect ENT, one day after the Federal Trade Commission said the acquisition could move forward only if Medtronic divested a subsidiary that makes certain medical devices for sinus procedures.
In a news release, Medtronic said the business known as Fiagon was simultaneously divested at the closing of the acquisition.
In 2021, Medtronic said it would pay $936.2 million to acquire Intersect ENT. No updated financial terms were included Friday in Medtronic's news release.
The acquisition gives Medtronic two bio-absorbable, steroid-eluting implants used in chronic rhinosinusitis (CRS) patients following endoscopic sinus surgery.
"This acquisition expands our portfolio, and we can now provide a more comprehensive continuum of care for CRS patients," Vince Racano, president of the ear, nose and throat (ENT) business in Medtronic's portfolio of neuroscience medical devices, said in a statement.
The FTC called for the divestiture of Fiagon products for navigation and balloon sinus dilation during ENT procedures. The commission said Medtronic already sold those products in a market where prices could rise significantly due to limited competition.
The FTC said the business unit would be sold to Hemostasis LLC, which is based in White Bear Lake.
Beyond the sinus implant technology, Medtronic said the deal to acquire Intersect ENT brings employees, intellectual property and a California facility to the Dublin-based medical device manufacturer. Medtronic's operational headquarters is in Fridley.