Medtronic and DaVita Announce Formation of New Kidney Health Technology Company

Both Parties Join Hands to Accelerate Innovation in Kidney Health Medical Devices 
Improve Clinical Outcomes

Dublin, Ireland and Denver, ColoradoMay 27, 2022/PR Newswire/ --Medtronic(New York Stock Exchange: MDT) andDaVita Inc.(New York Stock Exchange: DVA) today announced a cooperative intention to jointly establish a new and independent medical device company fully dedicated to the field of renal health, with the aim of further improving patient treatment experience and overall clinical outcomes.

This new company will leverage Medtronic's capabilities as a leader in the medical technology industry and DaVita's deep expertise as an integrated kidney health care service provider to create unique advantages, focusing on developing differentiated therapies for patients with renal failure. The company will concentrate on creating a complete range of new products and solutions in the kidney health field, including future-oriented home dialysis-related products, to improve the accessibility of different types of dialysis therapies.

"This is an exciting moment as we shape the future of kidney health," said Ven Manda, President of Medtronic's Renal Care Solutions business. "The new company, fully dedicated to end-to-end renal care solutions, will bring measurable changes to the lives of more than 3 million patients with kidney failure worldwide. The size of this patient population is expected to double in the next decade." Upon completion of this transaction and the official establishment of the new company, Ven Manda will serve as its CEO.

"We are excited to partner with Medtronic to share our deep understanding of patient and physician needs, aiming to accelerate the development and commercialization of scalable new technologies for kidney care," said Javier Rodriguez, CEO of DaVita. "DaVita is committed to applying top-tier solutions to improve clinical outcomes and healthcare accessibility, enhancing patients' quality of life. Partnering with Medtronic is a means to offer more choices to the market."

According to the terms of the agreement, the new company will be jointly owned by Medtronic and DaVita, with each holding 50% of the equity, and will be managed by an independent management team. Medtronic will contribute its Renal Care Solutions (RCS) business to this newly established company, which includes the current product portfolio (dialysis access, acute and chronic therapies), renal care products in the R&D pipeline, as well as related global manufacturing, R&D teams, and facilities. Other Medtronic products or portfolios are not included in this agreement (such as the arteriovenous access portfolio from Medtronic's Peripheral Vascular business). Both parties will inject initial investments into the new company and provide operational capital in the future.

The new company will unveil its new name and brand after the completion of the entire transaction. The company will then be governed by a six-member board of directors, with Medtronic and DaVita each nominating two board members, and the remaining two seats being held by independent directors.

We will inform and consult with employee representative organizations about this transaction in accordance with laws across various regions globally, and the implementation of this agreement will be subject to the outcomes of such information and consultation.

The transaction is expected to be completed within the next calendar year, and the progress of the transaction will depend on the progress of regulatory approvals in relevant countries and regions and the fulfillment of all closing conditions.

This press release contains forward-looking statements as defined by federal securities laws. All such statements in this press release, other than statements of historical fact, include, but are not limited to, statements regarding the expected impact and timing of the completion of the transaction.Statement，All are forward-looking statements."Expectations"、"Plan"、"Will"、"Plan"、"Expected"、"Possible"、"Continue"Words and similar expressions are indicative of forward-looking statements.DaVitaBoth Medtronic and Medtronic, plc. are based on the information available as of the date of this report.Make respective forward-looking statements, and has no obligation to publicly update or revise any forward-looking statements, whether due to changes in circumstances, emergence of new information, occurrence of future events, or other reasons, unless otherwise required by law. Actual results and events may differ significantly from any forward-looking statements because they involve a large number of known and unknown risks and uncertainties. These risks and uncertainties include, but are not limited toDaVitaOr submitted by Medtronic10-KTable and10-QThe risk factors specified in the table report (if applicable), andDaVitaOr other risks and uncertainties discussed in any subsequent reports that Medtronic periodically submits to the U.S. Securities and Exchange Commission.

About Medtronic

As a global leader in medical technology, Medtronic takes bold actions to address the severe health challenges facing humanity. Guided by its corporate mission to "alleviate pain, restore health, and extend life," more than 90,000 Medtronic employees worldwide unite their strengths. Leveraging expertise in healthcare and technology, along with a commitment to helping others, Medtronic delivers innovative medical technologies, drives healthcare services through insights, and provides people-centered experiences. These efforts improve health and lives, delivering better and more inclusive outcomes. Medtronic, life reimagined through technology.

For more information, please visit the global official website.http://www.medtronic.comAnd Greater China Official Websitehttp://www.medtronic.com.cn。

AboutDaVita

DaVita (NYSE: DVA) is an integrated kidney care service provider dedicated to reshaping kidney health treatment methods to improve the quality of life for kidney patients worldwide. The company is one of the largest kidney care service providers in the United States and has been a leader in clinical quality and innovation for over 20 years. DaVita is working hard to help patients increase accessibility at every stage and aspect of the kidney disease treatment pathway – from slowing the progression of kidney disease, simplifying the kidney transplant process, acute inpatient care, to home dialysis. As of December 31, 2021, DaVita served 203,000 patients across 2,815 outpatient dialysis centers in the United States. The company also operates 339 outpatient dialysis centers in 10 other countries globally. DaVita has reduced hospitalizations, lowered mortality rates, and is making joint efforts to drive the nephrology community to provide equitable, high-quality treatment standards for all patients around the world. For more information, please visitDaVita.com/About。