Summary
Boston Scientific Corporation (BSX) has announced a significant strategic move with the execution of a definitive purchase agreement to acquire the American Medical Systems urology portfolio from Endo International plc's subsidiaries. This transaction, valued at $1.6 billion in cash with a potential $50 million earn-out, focuses on strengthening BSX's position in Men's Health and Prostate Health. The acquisition is expected to close before the end of Q3 2015, subject to regulatory approvals and customary closing conditions. BSX plans to finance the deal using existing and new credit facilities. The agreement also includes provisions for transitional services and product supply between the two companies for a period post-closing, along with intellectual property licenses to facilitate the separation of businesses.
Key Highlights
- 1Boston Scientific (BSX) to acquire American Medical Systems (AMS) urology portfolio for $1.6 billion cash.
- 2The acquired portfolio includes Men's Health and Prostate Health businesses.
- 3Potential for an additional $50 million payment in 2017, contingent on 2016 performance.
- 4Transaction expected to close by the end of the third quarter of 2015.
- 5Financing for the acquisition will be a combination of existing and new credit facilities.
- 6Includes provisions for transitional services and product supply between BSX and Endo International post-closing.
- 7Intellectual property licenses will be exchanged as part of the business separation.