RiverVest Venture Partners said Monday it is selling IDEV Technologies to Abbott Laboratories for $310 million. The deal is expected to close by the end of the year. Webster, Texas-based IDEV develops next generation medical devices for interventional radiology, vascular surgery and cardiology. RiverVest said the sale represents a 2.6x gross return on $12 million invested by RiverVest, which owned IDEV shares through both its Fund I and Fund II.
ST. LOUIS–(BUSINESS WIRE)–RiverVest Venture Partners announced today that Abbott Laboratories is acquiring RiverVest medical device portfolio company IDEV Technologies for $310 million. With the sale of IDEV, life sciences venture capital firm RiverVest has successfully exited six portfolio companies since 2011, generating total acquisition proceeds of more than $1.5 billion, with more than $120 million of these proceeds going to RiverVest funds.
The sale of IDEV, for which RiverVest led the Series B financing, represents a 2.6x gross return on $12 million invested by RiverVest, which owned IDEV shares through both its Fund I and Fund II.
“Our investment strategy is based on building companies that will be attractive acquisition candidates to a ready set of strategic buyers,” says Jay Schmelter, RiverVest managing director and co-founder. “IDEV is a great example of what we can achieve with our portfolio companies.
“We believed that IDEV’s unique stent construction would translate to superior clinical results, which multiple clinical studies have now demonstrated,” says Schmelter. “These results, along with rapid market adoption, were the key drivers to acquisition interest in the company.”
Under the terms of the agreement, Abbott will acquire all outstanding equity of IDEV for $310 million net of cash and debt. The transaction is expected to close by the end of the year.
Based in Webster, Texas, IDEV develops next generation medical devices for interventional radiology, vascular surgery and cardiology. Because of its unique construction and material, the SUPERA stent has demonstrated significantly greater strength, flexibility and clinical results compared to other stents currently on the market.
“RiverVest has been a great supporter of IDEV,” says Chris Owens, president and CEO of IDEV. “I have valued Jay’s contributions and advice and my relationship with the RiverVest team.”
To view Abbott’s release, please visit www.Abbott.com.
About RiverVest Venture Partners®
RiverVest Venture Partners is a venture capital firm focused on identifying and shaping early-stage life science companies throughout the U.S. to create significant shareholder value. With hands-on, high-level expertise and financial resources, RiverVest supports entrepreneurs by helping them achieve near-term objectives that position their companies for exit.
Established in 2000, RiverVest has funded 29 innovative life science companies and currently has assets under management of $208 million. For more information, please visit www.RiverVest.com.