Boston Scientific announced on June 18 the acquisition of Silk Road Medical, located in Sunnyvale, California. Boston Scientific said it would pay $27.50 per share for Silk Road, totaling $1.16 billion. The California company’s shares were priced at $26.84 at midday Tuesday.
Silk Road Medical is a medical device company that is focused on reducing the risk of stroke and its impact. The company has pioneered a new approach for the treatment of carotid artery disease called TransCarotid Artery Revascularization (TCAR). TCAR is a clinically proven procedure combining surgical principles of neuroprotection with minimally invasive endovascular techniques to treat blockages in the carotid artery at risk of causing a stroke. According to its most recent financial report, the company’s revenue for the full year (FY) 2023 was $177.1 million, and Adjusted EBITDA was a loss of $17.7 million for FY 2023.
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 its fourth-quarter and full-year 2023 financial report, the company generated net sales of $14.2 billion and annual EBITDA of $3.6 billion.
Boston Scientific expects the acquisition to close in the second half of 2024. Silk Road saw its stock jump up nearly 24% from $21.67 on Monday to $26.82 on Tuesday following the news.
According to data captured in the LevinPro HC database, this acquisition marks the 42nd Medical Devices transaction of 2024. This is a notable decrease from 2023, when there were 55 Medical Devices deals announced between January 1, 2023, and June 18, 2023.
This also marks Boston Scientific’s second acquisition of the year. In January 2024 the company acquired Axonics, a global medical technology company that is developing and commercializing novel products for adults with bladder and bowel dysfunction, for approximately $3.7 billion.
