Boston Scientific Signs $50M Deal for Securus Medical Group
In a deal worth as much as $50 million, Boston Scientific said Tuesday it would buy the remaining stake that it does not already own in Securus Medical Group Inc., a privately-held developer of equipment used to measure body temperatures.
The acquisition is Boston Scientific’s third in the last month and fourth so far this year.
Boston Scientific — which ranks as the world’s 11th-largest medical device company by revenue with $8.4 billion last year — purchased partial ownership in Cleveland-based Securus back in 2016 when it participated in a $10 million Series C round for the company.
Securus’ technology primarily serves patient’s dealing with an irregular heartbeat, also known as arrhythmia. The condition is commonly treated with cardiac ablation, or the process of using hot or cool energy to destroy heart tissue that’s causing the arrhythmia. During this procedure, physician’s monitor the temperature of the area around the heart, particularly the esophagus, which is located behind the area of the heart where the hot or cool energy is applied.
Securus markets its thermal monitoring system as an advanced version of what’s currently on the market. The company’s system, according to Securus CEO Steven Girouard, takes temperature readings from thousands of points around the esophagus in a 360-degree view that refreshes every second — a contrast from other devices that only monitor esophageal temperatures from one or a few fixed locations.
“Further, the system does not require tissue contact for accurate temperature readings,” said Girouard in a statement, “allowing for simplified, one-time positioning of the probe.”
The addition of Securus’ technology will bolster Boston Scientific’s electrophysiology portfolio, which accounts for about 5 percent of its revenue, while also complimenting its other rhythm management and cardiovascular businesses.
The latest generation of Securus’ infrared esophageal temperature monitoring system recently received market approval from the FDA. Boston Scientific expects the device will be integrated into its portfolio and made commercially available in the U.S. in the first half of next year.
While Securus has received $40 million up-front in its sale to Boston Scientific, the company stands to make up to $10 million more if its hits certain “regulatory achievements and commercial milestones.”
Boston Scientific did not disclose its plan for Securus’ staff and operations, which are split between the company’s Cleveland headquarters and offices in Beverly, Massachusetts. Despite its name, Boston Scientific is actually headquartered in Marlborough, Massachusetts, and yet it employs nearly three times as many people (over 7,100 in total) in Minnesota compared to its home state.
Boston Scientific’s deal for Securus is starkly similar to a purchase it made less than two weeks ago in Minnesota. On March 21, the company announced it would acquire NxThera, a private urology business out of Maple Grove that it had invested in several years back. However, the deal for NxThera was significantly larger: worth as much as $406 million if certain milestones are hit.