Boston Scientific to buy medical tech firm Axonics for US$3.7 billion
BOSTON Scientific Corp is acquiring Axonics Inc, a maker of devices to treat urinary and bowel dysfunction, in a transaction valued at US$3.7 billion.
The company said in a statement on Monday (Jan 8) that it will pay US$71 a share in cash for the medical technology firm. That is about 23 per cent higher than Axonics’ Friday closing price of US$57.57 a share.
Axonics boosted sales 42 per cent to US$342.6 million in the 12 months through September. Acquiring the company will enable Boston Scientific to keep up a growth rate that saw it boost revenue about 10 per cent to US$13.8 billion during the same period.
The transaction was “reasonably” priced, in implying a valuation of 7.7 times sales estimates for this year, according to Bloomberg Intelligence analyst Matt Henriksson. Boston Scientific, which makes stents and pacemakers, is poised for more growth with elective surgeries likely returning to pre-pandemic levels, and this deal will add to that, he said.
Boston Scientific was little changed in trading before US markets opened, while Axonics rose 21 per cent to US$69.40.
The purchase, which should close in the first half of the year, is not expected to materially impact Boston Scientific’s 2024 adjusted earnings per share and will add to them thereafter.
The deal gives Boston Scientific access to a product portfolio that includes a device that delivers electrical stimulation to restore communication between the brain and the bladder. Almost 30 million Americans age over 40 have symptoms of an overactive bladder, and another 19 million adults have faecal incontinence. These conditions impact mental health, sleep, productivity and social activities, Boston Scientific said in the statement. BLOOMBERG
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