Medtronic completes $585M acquisition of CathWorks

GALWAY, Ireland - Medtronic plc (NYSE:MDT) announced today it has completed its acquisition of CathWorks, a medical device company focused on coronary artery disease diagnosis and treatment technology. With a market capitalization of $110.7 billion, Medtronic stands as a prominent player in the Healthcare Equipment & Supplies industry, according to InvestingPro data.

The acquisition is valued at $585 million with additional undisclosed earn-out payments possible after closing, according to a press release statement. The deal follows a 2022 strategic partnership between the companies that included a co-promotion agreement for the CathWorks FFRangio System in the U.S., Europe and Japan.

CathWorks’ FFRangio System uses artificial intelligence and computational science to provide physiological assessment of coronary arteries from standard angiograms without requiring drugs or pressure wires. Traditional fractional flow reserve assessment requires invasive pressure wires and pharmacologic hyperemia.

The company recently presented one-year results from its ALL-RISE randomized control trial at the 2026 American College of Cardiology conference. The trial included more than 1,900 patients across 59 sites in North America, Asia, Europe and the Middle East. Results showed the FFRangio System was non-inferior to wire-based physiology for major adverse cardiac events at one year.

"The acquisition of CathWorks significantly enhances Medtronic’s interventional cardiology portfolio with an innovative system that empowers physicians with data-driven insights for the diagnosis and treatment of coronary artery disease," said Jason Weidman, senior vice president and president of the Coronary & Renal Denervation business at Medtronic.

CathWorks was founded in Kfar Saba, Israel. Medtronic, headquartered in Galway, Ireland, employs more than 95,000 people across more than 150 countries.

The acquisition is expected to be immaterial to Medtronic’s fiscal year 2027 earnings per share and neutral to accretive thereafter, according to the company. Medtronic currently trades at a P/E ratio of 23.91 and generated revenue of $35.5 billion over the last twelve months. InvestingPro analysis indicates the stock is undervalued, with shares offering a 3.3% dividend yield. The company has maintained dividend payments for 50 consecutive years, one of 10+ InvestingPro Tips available to subscribers. For deeper insights, investors can access Medtronic’s comprehensive Pro Research Report, available for this and 1,400+ other US equities.

In other recent news, Medtronic has reported several significant developments. The company disclosed a one-time charge of $157 million in the fourth quarter of fiscal 2026 related to an earlier than expected FDA approval of MiniMed’s Flex insulin pump, as noted by Needham, which reiterated a Buy rating and a $120 price target. Stifel, while maintaining a Hold rating, adjusted its price target to $95 from $105, reflecting the impacts of Medtronic’s diabetes unit spinoff, now operating as MiniMed. Argus also lowered its price target for Medtronic to $115 from $125 but maintained a Buy rating, acknowledging the company’s strategic focus on its Cardiovascular, Neuroscience, and Medical Surgical businesses.

Additionally, Medtronic received FDA clearance for its Stealth AXiS surgical system, expanding its use to cranial and ear, nose, and throat procedures. This system integrates surgical planning, navigation, and robotics, enhancing support for surgeons during complex procedures. Stifel reiterated a Hold rating on Medtronic, citing positive survey results on the adoption of renal denervation procedures, which are gaining traction due to the October 2025 Medicare National Coverage Determination. These recent developments highlight Medtronic’s ongoing strategic adjustments and regulatory progress in its various business segments.

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