The medical device giant, Boston Scientific Corporation (NYSE: BSX), is kicking off the new year with a bang. The company has announced the acquisition of Preventice Solutions, Inc., which offers a full portfolio of mobile cardiac health solutions and services, ranging from ambulatory cardiac monitors to cardiac event monitors and mobile cardiac telemetry.
Boston Scientific is offering $925 million upfront in cash and up to an additional $300 million in a potential commercial milestone payment. Boston Scientific has been an investor in Preventice since 2015 and currently holds an equity stake of approximately 22 percent., which will result in a $720 million net payment and a net milestone payment of up to $230 million.
Preventice recorded net sales of $158 million in 2020, a 30 percent growth rate from the previous year. The acquisition is projected to close by mid-2021 and to be immaterial to adjusted earnings per share in 2021, accretive by at least one cent in 2022, and increasingly accretive thereafter.
Boston Scientific hasn’t announced an acquisition since 2019, according to search results in our Healthcare Deal Database, when it purchased Vertiflex, Inc. from H.I.G. BioHealth for $465 million. That deal was more focused on the spinal medical device market.
In early December, however, Boston Scientific received an influx of cash from its divestment of BTG Specialty Pharmaceuticals Business, which SERB SAS and Stark International Lux S.A.R.L., affiliates of SERB Specialty Pharmaceuticals, bought for $800 million.