Boston Scientific (NYSE:BSX) announced that it intends to make a partial offer to acquire a majority stake in Acotec.
Marlborough, Massachusetts-based Boston Scientific’s offer could add up to 65% of Acotec’s shares. Its proposed price totals HK$20 per share. That amounts to approximately $523 million for the 65% stake at current exchange rates.
Acotec is a Chinese medical technology company that offers solutions for a range of interventional procedures, including drug-coated balloons (DCBs) for treating vascular diseases.
The company launched the first peripheral DCB in China in 2016. It also offers radiofrequency ablation technologies and thrombus aspiration catheters, along with more than 20 other products in various development stages.
Acotec generated approximately $53 million in sales for the 12-month period ended June 30, 2022, according to a news release.
“Acotec is a profitable, fast-growing company with a strong portfolio and innovative pipeline of medical technologies, and we believe this investment will generate growth opportunities for both companies,” said Art Butcher, EVP and group president, MedSurg and Asia Pacific, Boston Scientific. “We expect completion of the partial offer to further strengthen our presence in China and create the potential for commercialization of Acotec products globally, providing an increased number of physicians and patients access to our robust and complementary product portfolios.”
Boston Scientific expects the acquisition to provide an immaterial impact to adjusted earnings per share in 2023. It projects a less accretive or dilutive impact to GAAP earnings. The company attributed this to amortization expense and acquisition-related net charges.
It expects to complete the transaction in the first half of 2023. The acquisition remains subject to acceptance and approval by Acotec shareholders, among other conditions.
