Summary
Boston Scientific Corporation (BSX) announced on September 21, 2021, its definitive agreement to acquire Devoro Medical Inc. This strategic move aims to bolster BSX's portfolio in the peripheral interventions market with Devoro Medical's innovative WOLF Thrombectomy® Platform, a technology designed for rapid clot extraction in various vascular procedures. BSX has been an early investor in Devoro Medical, holding a significant stake prior to the acquisition, which will influence the final transaction cost. The acquisition is structured with an upfront payment and additional payments contingent on achieving clinical and regulatory milestones. While the deal is expected to close in Q4 2021, it is anticipated to have a slightly dilutive impact on adjusted earnings per share (EPS) in 2021, which BSX expects to mitigate through internal efficiencies. The impact on GAAP EPS will be less dilutive due to a one-time gain recognized from the previously held equity stake. For 2022, the transaction is projected to be neutral to adjusted EPS but slightly dilutive on a GAAP basis due to amortization and acquisition-related costs.
Key Highlights
- 1Boston Scientific to acquire Devoro Medical Inc. for its WOLF Thrombectomy® Platform.
- 2Acquisition enhances BSX's peripheral interventions portfolio with advanced clot removal technology.
- 3Transaction includes an upfront payment of approximately $269 million (net of existing equity) and up to $67 million in milestone payments.
- 4BSX was already a strategic investor in Devoro Medical, holding a 16% equity stake.
- 5Acquisition is expected to close in the fourth quarter of 2021, subject to customary conditions.
- 6Transaction anticipated to be slightly dilutive to adjusted EPS in 2021, with mitigation strategies in place.
- 7Expected to be neutral to adjusted EPS in 2022, with minor GAAP dilution due to integration costs.