Boston Scientific to Buy Silk Road Medical for $1.26B
Massachusetts-based Boston Scientific Corp. already has a sizable presence in Minnesota. A planned acquisition might make it a little larger.
On Tuesday, the medical device giant announced plans to buy California-based Silk Road Medical for about $1.26 billion. In a news release, Boston Scientific said the enterprise value of the deal would come to $1.16 billion including Silk Road’s current net cash position of $101 million.
Silk Road is based in California, but, three years ago, the company received $625,000 from the state of Minnesota to build an office in Plymouth. The funds stemmed from two separate pots of money: the Minnesota Investment Fund and the Job Creation Fund. In January 2022, Silk Road made good on its promise and opened the Plymouth facility; today, it employs 119 people, a spokesperson said in an email.
Whether the acquisition would affect the companies’ Minnesota operations isn’t yet clear. “We will evaluate the needs of the combined organizations during the integration process,” a Boston Scientific spokesperson said. “Integration implementation will begin only upon closing of the deal, expected in the second half of 2024.”
Silk Road has developed a new form of treatment for carotid artery disease. In patients who have the disease, blood vessels that carry blood to the brain become clogged with plaque, which can lead to strokes.
Silk Road’s treatment, known as TransCarotid Artery Revascularization, earned approval from the U.S. Food and Drug Administration in 2015. The company maintains that the procedure is less invasive and carries fewer risks than the typical method of surgically removing plaque.
In a news release, Boston Scientific president of vascular and peripheral interventions Cat Jennings said Silk Road’s treatment is “a notable advancement in the field of vascular medicine, which has revolutionized stroke prevention and the treatment of carotid artery disease.”
“We believe the addition of this clinically differentiated technology to our vascular portfolio demonstrates our continued commitment to provide meaningful innovation for physicians who care for patients with peripheral vascular disease,” Jennings said.
Meanwhile, Boston Scientific’s plans have earned the approval of at least one analyst. In a note to clients, J.P. Morgan analyst Robbie Marcus said the deal is “largely inexpensive for Boston yet meaningful enough to move the needle on growth in the peripheral interventions business.”
As of Dec. 31, 2023, Boston Scientific had about 48,000 employees around the globe, with more than half working outside the United States. The company employs thousands in Minnesota between sites in Arden Hills and Maple Grove. Boston Scientific’s employee base has grown here through numerous acquisitions of Minnesota businesses, including its $850 million purchase of Edina-based Relievant Medsystems. That deal closed in late 2023.
Founded in 2007, Silk Road Medical has reported losses over the last few years. In 2023, the company had a loss of $55.7 million.
