Boston Scientific has acquired all remaining shares in its portfolio company Farapulse, having first invested in the University of Iowa spinout in 2014.
Farapulse, a US-based medical device developer spun out of University of Iowa, has been acquired by its peer and existing shareholder Boston Scientific for a $295m upfront payment.
Boston Scientific currently owns a 27% stake in the spinout and will purchase all remaining shares. The corporate may pay out an additional $92m in milestone payments, as well as an undisclosed amount of revenue-based payments over the next three years.
Founded in 2014 as Iowa Approach, Farapulse is working on a non-thermal ablation system to treat cardiac arrhythmias including atrial fibrillation. Its technology is expected to complement Boston Scientific’s electrophysiology portfolio.
Farapulse’s device has already launched commercially in Europe and Boston Scientific will look to accelerate the regulatory approval process in the US. The acquisition is expected to close in the third quarter of 2021.
Boston Scientific last invested in Farapulse in September 2020, when it also signed an exclusive option to acquire the business. It had first backed the company in 2014, according to the acquisition announcement, but further details could not be ascertained.
F-Prime Capital invested in the company in 2015, it said in its portfolio listing. Sante Ventures also lists Farapulse in its portfolio.
According to securities documents, Farapulse raised $12m in series A2 financing in August 2018, following a $5m investment in July 2017, a $15m transaction in March 2016 that included the conversion of $6m of notes, and $4.3m in equity, debt and other options in October 2015.
