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BOSTON SCIENTIFIC CORP 8-K Report, Corporate Update (Oct 6, 2021)

Filed October 6, 2021For Securities:BSX

Summary

Boston Scientific Corporation (BSX) has announced a significant strategic move with the signing of a definitive agreement to acquire Baylis Medical Company, Inc. for an upfront cash payment of $1.75 billion. Baylis Medical is recognized for its innovative radiofrequency (RF) NRG® and VersaCross® transseptal platforms, which are crucial for left heart access procedures, alongside a complementary suite of medical devices. This acquisition is expected to broaden Boston Scientific's product portfolio in a key growth area. The transaction is anticipated to be completed in the first quarter of 2022, subject to standard closing conditions. Financially, the acquisition is projected to be approximately one cent accretive to adjusted earnings per share (EPS) in 2022, with increasing accretion expected in subsequent years. While GAAP measures may initially show dilution due to amortization and acquisition-related costs, the long-term outlook on an adjusted basis is positive for EPS growth.

Key Highlights

  • 1Boston Scientific to acquire Baylis Medical Company for $1.75 billion in cash.
  • 2Baylis Medical brings RF transseptal platforms (NRG® and VersaCross®) and supporting devices, strengthening BSX's structural heart offerings.
  • 3Acquisition expected to close in Q1 2022, subject to customary closing conditions.
  • 4Transaction projected to be accretive to adjusted EPS by approximately 1 cent in 2022.
  • 5Further accretion to adjusted EPS is expected in periods following 2022.
  • 6GAAP EPS may show dilution in 2022 due to amortization and acquisition-related costs, becoming more accretive thereafter.
  • 7The acquisition signifies a strategic expansion into the left heart access market.

Frequently Asked Questions

The acquisition of Baylis Medical is intended to enhance Boston Scientific's presence and capabilities in the transseptal access market, particularly for structural heart procedures, by integrating Baylis's established RF transseptal platforms and related products into Boston Scientific's portfolio.

The acquisition is expected to be completed in the first quarter of 2022, provided that all customary closing conditions are met.

On an adjusted basis, the transaction is expected to add approximately one cent to Boston Scientific's earnings per share (EPS) in 2022 and become increasingly accretive thereafter. GAAP EPS may experience initial dilution due to accounting treatment, but is expected to become accretive over time.

Boston Scientific is acquiring Baylis Medical's radiofrequency (RF) NRG® and VersaCross® transseptal platforms, along with a family of guidewires, sheaths, and dilators that are used to support left heart access procedures.