Medtronic spent about $200 million in cash to buy a privately held company that develops deep brain stimulation technologies.
The acquisition of Sapiens Steering Brain Stimulation will make the medical device maker stronger in an emerging area of medicine, the modulation of brain function.
Neuromodulation involves the delivery of electrical pulses and drugs to specific sites in the nervous system. That can help patients manage chronic pain, movement disorders and spasticity. Deep brain stimulation is approved in Europe and the United States to treat advanced Parkinson's disease, among other conditions.
Sapiens, which is based in Eindhoven, The Netherlands, will serve as the global research and development center for Medtronic Inc.'s neuromodulation business.
Shares of Medtronic, based in Minneapolis, closed at $63.63 on Monday and have climbed about 11 percent so far this year.