Boston Scientific To Buy Gastroenterology Business For $210M
Boston Scientific will expand its portfolio of products treating gastrointestinal conditions by purchasing EndoChoice Holdings Inc. for $210 million, the company said Tuesday.
Boston Scientific—which employs roughly 7,200 workers in Minnesota—expects the transaction to close later this year. The medical device company agreed to a cash price of $8 per share for Alpharetta, Georgia-based EndoChoice.
During the 12-month period ending June 30, 2016, EndoChoice recorded $75 million in sales. Its product line is primarily single-use devices, such as resection and retrieval devices, needles, graspers and infection control kits. EndoChoice also provides pathology services and imaging technologies with its Full Spectrum Endoscopy (FUSE) colonoscope.
Marlborough, Massachusetts-based Boston Scientific noted that EndoChoice’s FUSE device would be a particularly valuable addition to its portfolio. By using three tiny cameras, the FUSE colonoscope is able to provide a 330-degree view—nearly double the perspective provided by its competitors, the company claimed.
“The combination of our broad portfolio of products and services for the gastroenterology physician, with the complementary products and large global infrastructure of the Boston Scientific endoscopy business, creates an enhanced growth platform for both businesses,” said EndoChoice CEO Mark Gilreath in prepared remarks.
Boston Scientific said it would disclose more details behind how it planned to integrate EndoChoice and its portfolio closer to the time of the transaction’s close.