MANAMA: Arcapita, a global investment management firm headquartered in Bahrain, said that its Arcapita Ventures I fund has completed the sale of its portfolio company, CardioMEMS, Inc.
CardioMEMS has been acquired by St. Jude Medical, Inc. (NYSE: STJ) a global medical device company headquartered in Minnesota, US St. Jude Medical had previously invested $60 million for a 19 percent shareholding of CardioMEMS and has now exercised its exclusive option to purchase the remaining 81 percent of the company, in a transaction valued in excess of $450 million.
CardioMEMS is a leading medical device company that develops implantable wireless sensors which gather and transmit pressure information from inside the human body. Recently, CardioMEMS has received US Food and Drug Administration (FDA) approval for its Heart Failure Management System.
“We have supported CardioMEMS as a venture partner for several years and are pleased that the technology developed by the company is proving effective in the provision of higher standards of care for heart patients. We are also delighted with the very positive returns we have generated from our investment in the business, benefiting investors in the Arcapita Ventures I fund,” Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, said.
“Jay Yadav, Founder and CEO of CardioMEMS and his team, not only came up with an innovative and revolutionary approach to treating heart failure but have spent the past 12 years making this a reality – it was my pleasure to work with a great team of people who constantly pushed the boundaries of medical innovation. Arcapita is proud to have been the lead investor in this ground-breaking technology which will provide invaluable support to millions of heart failure patients and reduce hospitalization rates in the U.S. and around the world,” John Huntz, Head of Arcapita Ventures and Chairman of CardioMEMS, added.
Headquartered in Atlanta, Georgia, CardioMEMS is a medical device company that has developed and is commercializing proprietary wireless sensing and communication technology for the human body. Its technology platform is designed to improve the management of severe chronic cardiovascular diseases such as aneurysms, heart failure and hypertension. CardioMEMS’ miniature wireless sensors can be implanted using minimally-invasive techniques and transmit cardiac output, blood pressure and heart rate data which are critical to the management of patients. Other major investors in CardioMEMS include Boston Millennia Partners, Johnson & Johnson and Foundation Medical Partners.