Toronto, ON (July 28, 2014) – Eventi Capital Partners, a Toronto-based growth capital investment firm specializing in high growth technologies in the IT and healthcare sectors, is pleased to announce the sale of Visualase Inc. to Medtronic Inc. in a deal valuing the company at approximately US$105 million.
Visualase is a privately held company based in Houston, Texas, that develops and sells a laser system for minimally invasive neurosurgery. The Visualase system is used to destroy, through minute drill holes, tissue that would otherwise be removed through invasive craniotomies. The Visualase technology has been used to treat more than 800 neurosurgical patients.
Eventi Capital Partners made its initial investment in Visualase in February 2009 with a follow-on round of financing made in May 2012. Since that time Visualase has been able to build out their core management team, broaden their device penetration in medical institutions, and expand their sales infrastructure geographically leading to exponential revenue growth.
“Our relationship with Visualase goes back over five years and has been a solid partnership with an outstanding management team led by CEO Bill Hoffman and COO and Co-founder Ashok Gowda. We saw great potential in the young firm and its team despite turbulent economic times in 2009, and are extremely proud to have played an active role as lead investor during the development and commercialization efforts,” said Scott Bryan, Managing Partner, Eventi Capital Partners. “The Visualase management team has successfully transitioned from an early stage enterprise to a mature and scalable venture and we are thrilled that the capital-efficient growth model employed has resulted in strong financial outcomes for the team as well as our investors.”
“We believe the transaction with Medtronic will help us bring our minimally invasive neurosurgical technology to an even a wider group of patients. Medtronic is recognized as the industry leader in neurosurgical solutions and we are proud to join their team,” said William Hoffman, Chief Executive Officer, Visualase. “We have had a very close partnership with Eventi over the past five years. Their hands-on financial and operational support helped Visualase to attain not only one of the most aggressive growth trajectories in the industry, but also one of the most cash-efficient commercial models.
The all-cash transaction of up to US$105 million includes an initial payment of US$70 million to Visualase’s shareholders plus the potential for an additional US$35 million in incremental revenue-based earn out payments. Proceeds from the sale will result in a multiple of invested capital of approximately 5.6 times for Eventi Capital Partners.
“Given that this marks the exit from our ownership position in Visualase, we believe it is important to recognize co-founder Dr. Roger McNichols, who passed away in 2012. Dr. McNichols was a brilliant colleague and a genuine friend to all who worked with him, and he is greatly missed,” concluded Bryan.
Leerink Partners LLC served as financial advisor and Miller, Egan, Molter & Nelson LLP served as legal advisor in the transaction.
Eventi Capital Partners is a Toronto-based growth capital investment group, specializing in commercialization of rapid growth technologies. Founded in 2002, Eventi Capital Partners leverages the extensive operational and investment experience of its Managing Partners to enable management teams to scale their business more predictably. Eventi invests in passionate entrepreneurs who possess deep domain expertise and are committed to building a scalable company that delivers exceptional value to its customers.
Scott Bryan, Managing Partner
Eventi Capital Partners
(416) 927-8887 ext. 102