Johnson & Johnson has acquired heart tech company AbioMed for approximately $16.6 billion.

The deal expands J&J’s presence into the high-growth market of heart failure and recovery, and adds AbioMed’s Impella heart pump to the J&J MedTech (JJMT) portfolio. AbioMed also has a pipeline of other lifesaving technologies, an 18-year track record of profitable growth and offers significant opportunities in indication, geography and product for heart failure and recovery.

Impella is a breakthrough technology with exclusive FDA approvals for treating severe coronary artery disease that requires high-risk percutaneous coronary intervention, acute myocardial infarction cardiogenic shock, or right heart failure.

“It will enable us to leverage Johnson & Johnson’s global scale, commercial strength and clinical expertise to accelerate our mission of making heart recovery the global standard of care,” said Michael Minogue, AbioMed’s chairman, president and chief executive officer, in a statement.

Heart failure is caused by all forms of cardiovascular disease, which is the number one cause of death, according to J&J.

In addition to the $16.6 billion, AbioMed shareholders will receive a non-tradeable contingent value right of up to $35 per share in cash if certain commercial and clinical milestones are met. The $16.6 billion will be paid upfront at $380 per share in cash and includes cash acquired.

J&J will combine its physician education resources, commercialization capabilities and robust clinical expertise with those of AbioMed to accelerate access and adoption of its technologies. AbioMed already has R&D programs and multiple randomized controlled trials underway for establishing Class I clinical guidelines to expand access to Impella.

AbioMed will become a stand-alone business within JJMT and become one of its 12 priority platforms due to having annual sales of at least $1 billion each. Andrew Greenfield, chief commercial officer for AbioMed, will succeed Minogue as president, while Michel Bodner, the worldwide president of J&J’s Biosense Webster Electrophysiology business, will manage the integration.

J&J will fund the transaction through cash and short-term financing. It expects the deal will accelerate pro forma MedTech and J&J enterprise revenue growth, and will become increasingly accretive in the years that follow.

“The addition of AbioMed provides a strategic platform to advance breakthrough treatments in cardiovascular disease and helps more patients around the world while driving value for our shareholders,” said Joaquin Duato, chief executive officer of J&J.

Both companies’ boards of directors unanimously approved the acquisition.

It is expected to be completed before the end of Q1 2023.

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