TE Connectivity acquisition of AdvancedCath will result in more-integrated catheter systems for medtech OEMs

A leading supplier of connectivity products, TE Connectivity Ltd. (Schaffhausen, Switzerland) announced today that it has entered into a definitive agreement to acquire AdvancedCath (San Jose, CA), a contract manufacturer serving medical device OEMs, for $190 million in cash. The purchase will allow TE's medical business to provide customers with more completely integrated products.

TE's medical business designs and manufactures connectors, sensors and components for use in surgical, interventional catheter, imaging, diagnostic and therapeutic healthcare applications. Upon completion of the transaction, the AdvancedCath team will report in through TE's medical business unit, which is part of TE's Industrial Solutions segment.

Projecting estimated 2015 revenues of $60 million, Advanced Cath designs, develops and manufactures advanced catheter systems for cardiovascular, peripheral, structural heart, electrophysiology and neurovascular applications. In-house technologies for catheter and guidewire production include design for manufacture, prototyping, pilot and volume manufacturing, catheter and guidewire assembly, and extrusion. In addition to the manufacturing capabilities, TE will gain access to AdvancedCath's materials expertise through this acquisition.

"The acquisition of AdvancedCath expands TE's Medical business and positions us to be a leading provider of connectivity and sensor solutions in the high-growth medical device market," said Terrence Curtin, President, TE Connectivity Industrial Solutions segment, in a news release. "Today's OEMs are developing innovative procedures that are minimally invasive to improve outcomes and quality of care. The combination of TE's connectivity and sensor solutions with AdvancedCath's expertise in the medical device market provides customers with an unmatched set of capabilities and technologies that enable future innovations and medical advances."

"We can now offer customers an unmatched combination of sensor, material science, electrical and biomedical technologies and a single source of manufacturing expertise for advanced medical devices," said Randall Sword, CEO, AdvancedCath. "With TE's geographic footprint, we can provide better support to our global customers as they progress through development, clinical trials and volume manufacturing."

TE articulates the strategic rationale for the acquisition, as follows:

TE Connectivity reported revenue of $3.45 billion for the fiscal first quarter ending on Dec. 26, according to the Wall Street Journal.