Teleflex has signed a definitive agreement to purchase NeoTract for approximately $1.1bn.

According to the deal, Teleflex will pay $725m worth of cash upfront at closing and up to an additional $375m after the achievement of select commercial milestones associated with sales until the end of 2020.

Founded in 2004, NeoTract’s product is a minimally invasive technology called UroLift System developed to treat lower urinary tract symptoms caused by benign prostatic hyperplasia (BPH).

Through a transurethral outpatient procedure, the system delivers permanent implants to hold open the urethra and to minimise prostate obstruction without cutting, heating or removing the prostate tissue.

With a revenue of approximately $51m last year, NeoTract is expecting $115m to $120m this year, and a 40% growth next year.

Teleflex chairman and CEO Benson Smith said: “NeoTract has compelling growth opportunities as they continue to penetrate the market with their existing product.

"The acquisition is expected to significantly advance Teleflex’s urological solutions portfolio with the addition of NeoTract’s UroLift System."

"We look forward to potential longer-term benefits from their second-generation UroLift System, which is expected to launch in the second half of 2018.”

Structured as a merger, the acquisition is expected to significantly advance Teleflex’s urological solutions portfolio with the addition of NeoTract’s UroLift System.

NeoTract will leverage Teleflex’s international presence and distribution network to enhance its revenue growth.

NeoTract president and CEO Dave Amerson said: "Today's announcement is recognition of our focus on patient outcomes and the hard work and dedication of the entire NeoTract team.”

Subject to customary closing conditions, the transaction is scheduled to close within the next 30 days.