Integra LifeSciences Holdings Corp. is seeking to establish itself in the ear, nose and throat category with its acquisition of Acclarent Inc.

The Princeton-based medical technology company announced Dec. 13 it entered into a definitive agreement to purchase Acclarent from Ethicon Inc., a Johnson & Johnson MedTech company, for $275 million in cash at closing.

According to Integra, the move will make the company one of the leading ENT products and tech providers.

“This acquisition presents Integra with a rare opportunity to become a key player in the ENT segment. Acclarent’s culture of pioneering technologies aligns with Integra’s legacy of innovation to transform care and restore patients’ lives,” said Jan De Witte, president and chief executive officer of Integra LifeSciences, in a statement accompanying the deal announcement. “We are looking forward to welcoming the Acclarent employees to the Integra team. Together, we can make a profound impact on the future of ENT and neurosurgery.”

Based in Irvine, Calif., Acclarent was acquired by J&J in 2010 for $785 million. The company’s minimally invasive technologies are solely focused on ENT.

Acclarent will become part of Integra’s Codman Specialty Surgical division, adding approximately $1 billion to the CSS global total addressable market, according to Integra. The company is currently active in the ENT category with its MicroFrance instruments.

Acclarent’s portfolio includes “groundbreaking” balloon technologies for sinus dilation and eustachian tube dilation – used to treat persistent Eustachian tube dysfunction, a condition in which pressure, pain or clogged or muffled sensations occur in the ear – in addition to surgical navigation systems, including the first such tool that is AI-driven.

The domestic ENT specialty devices market is growing at 5% to 6% annually. According to Grand View Research, in 2022 the ENT devices market was valued at $23 billion. Along with technological advancements, that firm cited the growing prevalence of ENT-related disorders, an aging population and the increasing availability of minimally invasive procedures as drivers.

According to Integra LifeSciences, the target derives its revenues from U.S. product sales, which generated approximately $110 million in 2022 and gross margins in line with the buyer’s company average. Acclarent maintains R&D facilities in Irvine and Haifa, Israel, and uses third-party manufacturers.

Beyond gaining an ENT-market edge, Integra LifeSciences pointed to the other potential benefits of the transaction.

“The ENT segment is an anatomical adjacency to neurosurgery. For example, this acquisition will provide opportunities for ENT and neurosurgeons to closely collaborate on tumor care using skull base approaches,” Mike McBreen, president of the CSS division, said in a statement. “Acclarent’s strong commercial capabilities, R&D expertise, advanced portfolio and deep clinical knowledge will be important assets to Integra, allowing us to deliver future innovation not only within ENT, but also across our other CSS technology platforms.”

The transaction is expected to close by the second quarter of 2024. For now, Integra said the deal would generate shareholder value and is expected to be accretive to the company’s long-range plan. The company expects to provide detailed guidance regarding the financial effects upon closing.

The deal is subject to customary purchase price adjustments as well as an additional $5 million upon achievement of certain regulatory milestones. Following the close, transition services, including for manufacturing services, will be provided for up to four years, Integra said.

Goldman, Sachs & Co. is serving as exclusive financial advisor, and Morgan, Lewis & Bockius LLP is acting as counsel to Integra.