Healthcare and medical device giant Abbott Laboratories is for the second time this month providing an exit route for private equity and venture capital investors, having Thursday agreed to buy venture-backed Evalve in a $410 million deal.
Abbott will acquire the 90 percent of the heart valve implant maker it does not already own via an upfront cash payment of $320 million, according to a statement. Additional payments related to regulatory milestones could total up $90 million.
Evalve was founded in 1999 and over the years has raised more than $117 million in funding rounds financed by firms including New Enterprise Associates, Delphi Ventures, Split Rock Partners, Apothecary Capital, Cutlass Capital, Integral Capital Partners, ABS Ventures, Emergent Medical Ventures, Kearny Venture Partners and Three Arch Partners.
Secondaries firm Saints Capital, which specialises in direct secondaries deals for venture-backed companies and portfolios, is also an investor.
Subject to standard closing conditions, the deal is expected to close by the end of the year.
Abbott’s strong appetite for acquisitions has frequently benefitted private equity and venture capital funds.
Last week the company agreed to pay $400 million for Visiogen, a maker of products for cataract patients. Founded in 2001, Visiogen raised nearly $100 million in various funding rounds from firms including Three Arch, New Leaf Venture Partners, CMEA Capital, Novartis Venture, Prospect Venture, Technology Partners and Foundation Medical Partners.
In 2005, Greenwich, Connecticut-based North Castle Partners reaped a 2.5x return on its investment in nutrition company EAS when Abbott bought the company for $320 million.