Medtronic has agreed to pay about $200 million in cash to buy Sapiens Steering Brain Stimulation, which is a privately held company that develops deep brain stimulation technologies.

The acquisition of Sapiens Steering Brain Stimulation will help Medtronic gain strength in the medical device market. It will also allow Medtronic to take the lead 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. The governments in Europe and the United States have approved deep brain stimulation to treat advanced Parkinson's disease, among other conditions.

Sapiens is based in Eindhoven, The Netherlands, and after the completion of the acquisition the company will serve as the global research and development center for Medtronic Inc.'s neuromodulation business.

Shares of Minneapolis-based Medtronic closed at $63.63 on Monday. The company's shares have climbed about 11 percent so far this year.