ev3 Inc., a global endovascular device company, has closed the acquisition of Chestnut Medical Technologies Inc., a Menlo Park, Calif.-based company focused on developing minimally invasive therapies for interventional neuroradiology, according to the company.

The purchase by the Plymouth, Minn.-based firm broadens ev3's neurovascular product portfolio by adding the Pipeline Embolization Device for the treatment of cerebral aneurysms and the Alligator Retrieval Device for foreign body retrieval to ev3's existing embolic product and access technologies.

Chestnut's Pipeline technology is designed to divert blood flow away from an aneurysm in order to provide a complete and durable aneurysm embolization while maintaining patency of the parent vessel.

ev3 acquired 100 percent of the equity interests of Chestnut for $26 million in net cash and about 5 million shares of ev3 common stock for total upfront consideration of approximately $75 million.

An additional milestone-based contingent payment of up to $75 million is payable in a combination of cash and ev3 common stock upon the receipt of U.S. Food and Drug Administration pre-market approval of the Pipeline device.

ev3 financed the upfront cash payment at closing through cash on hand.

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