Medtronic plc, listed on the New York Stock Exchange as MDT, announced on Tuesday its decision to exercise an option to acquire CathWorks, an Israeli private company specializing in medical devices focused on coronary digital health. The deal is valued at a maximum of $585 million, potentially supplemented by undisclosed performance-based earn-out payments following completion.
This acquisition follows a strategic alliance formed in 2022, during which Medtronic and CathWorks entered a co-promotion partnership to market the CathWorks FFRangio System across key markets, including the United States, Europe, and Japan. The system is currently commercially available in these regions.
Coronary physiology assessment, particularly through fractional flow reserve (FFR), is critically important in cardiology as it enables clinicians to determine which coronary blockages cause ischemia and require treatment. CathWorks has harnessed artificial intelligence and advanced computational science to develop its FFRangio System, which derives FFR values directly from angiography images spanning the entire coronary network.
Beyond just providing physiological measurements, the FFRangio System incorporates tools for real-time procedural optimization. These include assessing the physiological effect of lesion treatments and interactive sizing instruments to measure lesion dimensions. Together, these features ensure precise targeting of revascularization procedures only to patients whose lesions necessitate intervention, thereby minimizing unnecessary percutaneous coronary interventions (PCI).
The transaction remains subject to regulatory approval from the United States Federal Trade Commission (FTC). This phase is expected to conclude by the end of Medtronic’s fiscal year 2026. Upon completion, CathWorks will be integrated into Medtronic’s operations, although both companies will continue independent functioning until the deal is finalized.
Financial and Market Implications
From a financial perspective, the acquisition is anticipated to be immaterial with respect to Medtronic’s fiscal year 2027 generally accepted accounting principles (GAAP) and adjusted earnings per share (EPS). In subsequent years, the deal is expected to be neutral to accretive in terms of earnings.
In a separate but related development, a January analyst upgrade by William Blair highlighted Medtronic’s positive momentum due to several new and increasing product launches. Meanwhile, in December 2025, the U.S. Food and Drug Administration (FDA) acknowledged Medtronic’s notification to customers regarding a voluntary removal of certain Left Heart Vent Catheters from use and sale due to safety concerns. These catheters are utilized in cardiopulmonary bypass surgeries lasting up to six hours to vent the left heart.
Stock Performance
On the day of the announcement, Medtronic shares experienced a 1.86% increase, closing at $104.62, according to real-time market data.
Conclusion
Medtronic’s forthcoming acquisition of CathWorks represents a calculated expansion into AI-powered coronary digital health technologies. By integrating CathWorks’ innovative FFRangio System, Medtronic aims to enhance diagnostic precision for coronary artery disease and optimize treatment pathways, reinforcing its competitive positioning within the cardiac care sector.