St. Jude Medical to Invest $60 Million in CardioMEMS with an Option to Purchase

ATLANTA--(BUSINESS WIRE)--Arcapita, a global investment company, announced today that Atlanta-based CardioMEMS, an Arcapita Ventures portfolio company, has entered into an equity investment and option to purchase agreement with St. Jude Medical, a global medical device company.

“CardioMEMS has been one of the best performers in our portfolio, and we are extremely pleased that our participation over the past four years has helped shape the company into one of the leading providers of innovative remote medical management technology”

St. Jude Medical will make a $60 million equity investment in CardioMEMS, a medical device company that has developed a wireless sensing and communication technology to assess cardiac performance. Arcapita’s Global Head of Venture Capital, John Huntz, worked closely with the management team to complete the transaction, which gives St. Jude Medical a 19 percent ownership in the company, as well as an exclusive option to purchase the remaining interest for $375 million.

“CardioMEMS has been one of the best performers in our portfolio, and we are extremely pleased that our participation over the past four years has helped shape the company into one of the leading providers of innovative remote medical management technology,” Huntz said. “This transaction not only represents a successful event for our investors, it is also an opportunity for CardioMEMS to potentially expand its efforts in cardiac management under the expert ownership of St. Jude Medical.”

Arcapita began its relationship with CardioMEMS in 2006 when Arcapita Ventures led an initial $22.6 million round of financing. CardioMEMS was launched at Georgia Tech’s Advanced Technology Development Center (ATDC) and to this day is one of the program’s most notable successes. Huntz will remain on the CardioMEMS Board of Directors as Chairman.

Jay S. Yadav, M.D., Founder, Chief Executive Officer and Director of CardioMEMS, said, “Arcapita has been a vital force behind our growth and expansion, and we are thankful that John and his team recognized our potential early-on and supported our development. As we look to the future, we are excited to have the support of a company like St. Jude Medical, with its significant expertise and focus in the areas of cardiac rhythm management, heart failure disease management and other cardiac technologies."

JP Morgan Securities LLC is acting as financial advisor to CardioMEMS and Cooley LLP as legal counsel.

About Arcapita

Arcapita is a global investment bank headquartered in Bahrain with offices in Atlanta, London and Singapore, and operates across four lines of business: Corporate Investment, Real Estate Investment, Asset-Based Investment and Venture Capital. Since its foundation in 1997, Arcapita has completed more than 71 transactions with a total value of approximately $28 billion and has a balance sheet footing of $5.1 billion. Arcapita Ventures, a $200 million dedicated investment fund launched in October 2005, focuses on growth stage enterprises primarily in the United States. From its offices in Atlanta, Arcapita typically acts as the lead investor in companies operating in the (i) healthcare, (ii) information technology and (iii) industrial technology sectors. The investment team looks for businesses that have established technologies and customer bases, and where its investment capital, network and expertise can be applied to scale a proven business model. Typically, the Fund invests between $4 and $8 million in an initial round of funding, with the capability to invest up to $30 million over the life of a portfolio company. Where appropriate, we partner with other leading venture firms who can bring additional capital, market reach and overall support to our portfolio companies. Contact Arcapita Ventures at 404-920-9000, via e-mail at [e-mail], or on the web at www.arcapita.com.

About CardioMEMS, Inc.

CardioMEMS is a medical device company that has developed and is commercializing proprietary wireless sensing and communication technology for the human body. Its technology platform is designed to improve the management of severe chronic cardiovascular diseases such as aneurysms, heart failure and hypertension. CardioMEMS miniature wireless sensors can be implanted using minimally-invasive techniques and transmit cardiac output, blood pressure and heart rate data which are critical to the management of patients. The sensors can be permanently implanted into the heart and blood vessels due to their small size, durability and lack of wires and batteries. Using radiofrequency (RF) energy, the sensors transmit real-time data to external electronic readers, which then communicate this information to the patient’s physician. More information about CardioMEMS is located at www.cardiomems.com.

About St. Jude Medical

St. Jude Medical develops medical technology and services that focus on putting more control into the hands of those who treat cardiac, neurological and chronic pain patients worldwide. The company is dedicated to advancing the practice of medicine by reducing risk wherever possible and contributing to successful outcomes for every patient. St. Jude Medical is headquartered in St. Paul, Minn. and has four major focus areas that include: cardiac rhythm management, atrial fibrillation, cardiovascular and neuromodulation. For more information, please visit sjm.com.