Fresenius, a global leader in dialysis, brings dialysis into the home with a $2 billion deal.
As hospitals and other providers face mounting pressure to deliver high-quality, lower cost services, one company has taken the initiative to become a world-leader in at-home critical care.
On August 7, 2017, Fresenius Medical Care (NYSE: FMS) acquired NxStage Medical, Inc. (NASDAQ: NXTM) for $2.0 billion. Fresenius Medical Care will acquire all outstanding shares of NxStage for $30.00 per common share, valuing the deal at approximately $2.0 billion, including $1.24 million of debt. Multiples work out to 5.11x revenue and 7.97x EBITDA.
Based in Boston, NxStage Medical develops, manufactures, and markets products and services for patients suffering from chronic or acute kidney failure. Its primary product includes the System One, a portable hemodialysis system, which is used primarily for home hemodialysis and a range of dialysis therapies to deliver at home.
Fresenius Medical treats 315,305 patients globally through its networks of 3,690 dialysis clinics. The deal now enables Fresenius Medical Care to further leverage its manufacturing, supply chain and marketing competencies across the dialysis products, services and care coordination businesses in a less labor- and capital-intensive care setting. Fresenius Medical Care expects the acquisition to be accretive to net income and EPS within three years from closing.
