When medical device company Asthmatx pulled its IPO last November, we reported that the company had been presented with a superior offer just 90 minutes prior to pricing. Not a buyout, but some sort of strategic investment. The lack of specificity implied that a publicly-traded company was probably involved.
Six months later, we (finally) have details. Seems it took a bit longer than expected to dot the I’s and cross the T’s.
Asthmatx announced today that it has raised $50 million in Series D funding from Olympus Medical Systems Corp. (Tokyo: 7733), in exchange for a 15% ownership position. This is a fairly similar arrangement to Asthmatx’s existing deal with Boston Scientific, in that Olympus receives board observer rights but no additional window into specific products or option to buy additional shares.
There are two reasons why this deal is superior to the proposed IPO: First, it raises nearly as much cash, as the revised IPO terms were only expected to net around $65 million. Second, the Series D pre-money valuation of around $280 million is double the IPO pre-money of around $140 million.
Asthmatx — which makes catheter-based devices for the treatment of asthma — previously had raised around $42.5 million in VC funding, including a $27 million Series C infusion in late 2005 at a $65.5 million post-money valuation. Participants on that round included Polaris Venture Partners, Menlo Ventures, MedVenture Associates, HBM BioVentures, Montreux Equity Partners and Vanguard Ventures.