Medical-devices company Boston Scientific Corp. on Tuesday said it agreed to buy EndoChoice Holdings Inc. for roughly $210 million, expanding its endoscopy business as sales of some products have slowed.
Boston Scientific said it would pay $8 a share in cash for EndoChoice, a 90% premium to its closing price of $4.22 a share on Monday.
Boston Scientific, based in Marlborough, Mass., has diversified its product offerings in recent years to help pad softening sales in some bread-and-butter areas, such as pacemakers and implanted defibrillators. In July, the company raised its earnings outlook amid better-than-expected revenue. In its endoscopy business, which EndoChoice will become part of, sales rose 11% in the June quarter to $361 million.
Georgia-based EndoChoice, which posted sales of $75 million in the 12 months ended June 30, makes endoscopic imaging systems, devices and infection-control products.
Boston Scientific said it expects to complete the acquisition in the fourth quarter, and that the deal will be neutral to its adjusted per-share earnings in 2017 and add to profits thereafter.
By Joshua Jamerson
Source: Wall Street Journal
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