Boston Scientific to acquire Preventice Solutions for $925 million in cash, up to $300 million in milestone payments

Boston Scientific Inc. undefined said Thursday it has agreed to acquire privately held Preventice Solutions Inc. for an upfront payment of $925 million and up to $300 million in potential milestone payments. The company has been an investor in Preventice since 2015 and currently owns a 22% state. Preventice, which provides mobile cardiac services, including ambulatory cardiac monitors, had sales of $158 million in 2020, up 30% from the year-earlier period. “Cardiovascular disease is the leading cause of mortality globally, accounting for nearly 17.9 million annual global deaths and highlighting the need for early detection and management for individuals who may be at risk of a cardiac event,” Boston Scientific said in a statement. The deal is expected to close by mid-2021 and to be immaterial to adjusted earnings in the first year, to boost adjusted earnings by at least one cent in 2022 and to be increasingly accretive after that. “This acquisition will provide Boston Scientific with a foothold in the high-growth ambulatory electrocardiography space, which strongly complements our recent entrance into the implantable cardiac monitor market and will serve as an important component of our category leadership strategy in cardiac diagnostics and services — a nearly $2B market anticipated to grow double digits annually,” said Scott Olson, Boston Scientific senior vice president and president, Rhythm Management, in a statement. Shares were up 0.9% premarket, but have fallen 17% in the last 12 months, while the S&P 500 undefined has gained 16%.

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