Medtronic wants to go to more minimum invasive surgery technology and Heartware acquisition will support this vision.
HeartWare’s flagship product, the HVAD System, is placed in the body through a less-invasive surgery and assists with blood flow when the heart is unable to pump blood efficiently.
HeartWare is the second biggest player in the U.S. heart pumps market with a 40 percent share. St Jude Medical Inc’s (STJ.N) Thoratec unit leads the market with a 60 percent share.

Global heart pump market was estimated at about $800 million.

The HeartWare acquisition for $1.1 Billion is expected to close during Medtronic’s second fiscal quarter ending Oct. 28.

The move will be the latest consolidation of the medical technology industry, where companies are racing to build broad portfolios of products to sell to hospitals. The deal will help Medtronic compete with St. Jude Medical Inc., which last year bought HeartWare’s only competitor, Thoratec Corp., for $3.4 billion, taking the lead in treating heart failure. St. Jude, meanwhile, is being acquired by Abbott Laboratories in a $25 billion transaction.

HeartWare rose 92 percent to $57.52 at 11:04 a.m. in New York, suggesting investors believe the deal will go through. Medtronic fell 2.4 percent to $81.28.