Edwards Lifesciences Corp. (NYSE: EW) has agreed to buy venture capital-backed medical device manufacturer Valtech Cardio Ltd. The acquisition allows Edwards to expand its services in heart valve repair and replacement.

Edwards will pay up to $690 million for Valtech. The purchase price consists of a $340 million stock and cash payment at closing and up to another $350 million that is based milestone achievements over the next 10 years.

Valtech, located in Or Yehuda, Israel, is known for developing the Cardioband System used to treat and repair heart valves by inserting a catheter into a vein that reaches the heart. The target is backed by Eyal Lifschitz, CEO of Peregrine Ventures, along with OXO Capital Valve Ventures and NGN Capital. Cardioband has been approved for sales in Europe but not in the U.S.

“As we continue to pursue multiple therapies to address the diverse the needs of patients affected by heart valve disease, we saw an important opportunity to incorporate Valtech’s technologies into our comprehensive heart valve repair and replacement portfolio,” says Edwards CEO Michael Mussallem.

Edwards makes medical devices used to treat heart disease. Some of the company's products include catheters, pressure monitoring systems and surgical heart valves.

Separately, Valtech said it will spin off trans-septal mitral valve replacement technology program. Irvine, California-based Edwards has the option to buy that business.

M&A in medical devices has been active. In other recent deals, Johnson & Johnson (NYSE: JNJ) agreed to buy Abbott Laboratories’ (NYSE: ABT) eye-surgery equipment unit; Tecomet Inc. acquired endoscope manufacturer Mountainside Medical; and Windjammer Capital Investors purchased medical test equipment maker Advanced Instruments LLC

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