Boston Scientific has entered into an agreement to acquire a majority stake in Acotec Scientific Holdings Limited. The proposed price is HK$20 per share, which represents a total upfront cash payment consideration of approximately $523 million USD for the 65% stake.
Boston Scientific expects the impact to adjusted earnings per share to be immaterial in 2023 and the impact to GAAP earnings per share to be less accretive, or dilutive, as the case may be, due to amortization expense and acquisition-related net charges. The completion of the transaction, which is anticipated in the first half of 2023, is subject to acceptance and approval by Acotec shareholders and other conditions set forth in related filings.
Acotec is a provider of drug-coated balloons (DCBs) that are used in the treatment of vascular and other diseases. In 2016, the company launched the first peripheral DCB in China. The Acotec portfolio also includes radiofrequency ablation technologies and thrombus aspiration catheters, as well as more than 20 other products in various stages of development across a range of specialties. In the 12-month period ending June 30, 2022, Acotec generated sales of RMB 339 million (approximately $53 million USD), growing 25% year-over-year in the first six months of 2022 with strong double-digit growth in each of the two years prior.
Boston Scientific develops and manufactures minimally invasive medical devices used in interventional cardiology, cardiac rhythm management, peripheral interventions, electrophysiology, neurovascular intervention, endoscopy, urology and gynecology.
According to the LevinPro HC database, this was the 113th Medical Devices deal of 2022. This compares with 115 transactions in the Medical Devices sector reported between January 1, 2021, and December 12, 2021.
