Swedish medical technology company Getinge has agreed to acquire US-based organ transplant company Paragonix Technologies in an all-cash deal worth around $477m.
The consideration includes an upfront payment of $253m and potential earn-out payments exceeding $224m, contingent on achieving certain regulatory and financial performance milestones between 2024 and 2026.
The acquisition is aimed at enhancing Getinge’s global healthcare portfolio by incorporating solutions for solid organ transplantation.
For Paragonix Technologies, the deal will extend the reach of its organ transplant technologies into new markets and provide opportunities for integrating the organ containment and blood perfusion technologies of both companies. This development is said to align with both companies’ goals to deliver solutions across the entire spectrum of transplant care.
Paragonix Technologies CEO and president Lisa Anderson said: “Our product portfolio, transplant services, and robust clinical data position us as an industry leader.
“Together, we look forward to making a broad clinical impact, improving patient care, and launching new innovations in transplantation and end-stage organ failure. With Getinge’s global sales footprint, we can now extend our technologies and solutions to underserved patient populations worldwide.”
Based in Massachusetts, Paragonix Technologies develops organ preservation devices. It is claimed to be a major provider of cardiothoracic organ preservation technology in the US and is also expanding its presence in abdominal transplantation.
Paragonix Technologies’ portfolio includes clinical research initiatives, digital logistics platforms, and clinical services networks. The acquisition by Getinge will facilitate the global distribution of these technologies and support the development of new solutions to address critical global healthcare needs.
The organ preservation devices developed by Paragonix Technologies combine cooling techniques with digital tracking and monitoring technologies. These devices offer control and oversight throughout the donor organ journey.
The clinical impact of the company’s technology is supported by the GUARDIAN clinical registries, which analyse post-transplant outcomes in transplant recipients.
In March 2023, Paragonix entered into a partnership with Signet Healthcare Partners, a growth equity firm focused on healthcare, to advance its growth and strategic goals.
Currently, Paragonix Technologies offers four US Food and Drug Administration (FDA)-cleared and CE-marked preservation devices. These include the Paragonix SherpaPak Cardiac Transport System, the LUNGguard Donor Lung Preservation System, the LIVERguard Donor Liver Preservation System, and the BAROguard Donor Lung Preservation System.
Getinge acute care therapies president Elin Frostehav said: “Paragonix, as a developer, manufacturer, and service provider in the organ transplant industry, has established itself as a pioneer in organ transplantation, providing a novel approach to organ preservation, transport, and procurement.
“Teaming up with Paragonix’s team and technology is not just a strategic fit for Getinge; it is a catalyst to redefine the market standard in transplantation. By leveraging our expertise in the acute heart and lung support segment and providing access to our existing global sales network, we hope to expand the reach of this technology.”
The boards of directors of both firms have approved the transaction, which is subject to the satisfaction of customary closing conditions. Upon completion, Paragonix Technologies will become a wholly owned subsidiary of Getinge.
Sheppard, Mullin, Richter & Hampton is serving as the legal adviser for Paragonix Technologies, while Knobbe Martens Olson & Bear is handling intellectual property counsel, and UBS Investment Bank Securities is the exclusive financial adviser.
