Medtronic plc and DaVita Inc. announced intent to form new, independent kidney care-focused medical device company (NewCo or company) to enhance the patient treatment experience and improve overall outcomes. By bringing together Medtronic's capabilities as a healthcare technology leader and DaVita's deep expertise as a comprehensive kidney care provider, NewCo will be uniquely positioned to advance the development of differentiated therapies for patients with kidney failure. The company will focus on developing a broad suite of novel kidney care products and solutions, including future home-based products, to make different dialysis treatments more accessible to patients.

Under the terms, NewCo will be co-owned by Medtronic and DaVita, each with equal equity stakes, and led by an independent management team. Medtronic will contribute its Renal Care Solutions (RCS) business including the current product portfolio (renal access, acute therapies, and chronic therapies), product pipeline, and global manufacturing R&D teams and facilities. No other Medtronic products or portfolios, including those in the AV access portfolio in the Peripheral Vascular Health business, are included.

Both companies will provide an initial investment to fund NewCo and future certain operating capital. NewCo, which will be renamed and rebranded at close, will operate as an independent company governed by a six-person board of directors composed of two directors each from Medtronic and DaVita, and two independent directors. The transaction is expected to close in the next calendar year, subject to the completion of the information and consultation obligations with employee representative groups under applicable laws and receipt of customary regulatory approvals and satisfaction of customary closing conditions.