Boston Scientific (NYSE: BSX) today announced the completion of its $3.7 billion acquisition of Axonics, Inc. (Nasdaq: AXNX).
The Marlborough, Massachusetts–based medtech giant priced the deal at $71 per share in cash, representing an equity value of $3.7 billion and an enterprise value of $3.3 billion. The acquisition expands Boston Scientific’s urology offerings by adding Axonics’ sacral neuromodulation (SNM) systems.
Boston Scientific first announced its plans to buy Axonics in January, but the deal close was delayed as the FTC requested additional information regarding the acquisition.
Axonics is known for its neuromodulation systems, including the fourth-generation R20 rechargeable SNM and recharge-free F15 SNM systems. Both treat urinary and bowel dysfunction by delivering mild electrical pulses to the sacral nerve. The company also offers Bulkamid, a urethral bulking agent for stress urinary incontinence.
“Over the last decade, it has been impressive to see the meaningful innovations Axonics has delivered for patients with overactive bladder and incontinence,” said Meghan Scanlon, senior vice president and president of Urology at Boston Scientific. “By closing this acquisition, we’re pleased to welcome the Axonics team into Boston Scientific. The addition of the Axonics product portfolio enables us to expand into sacral neuromodulation, a high-growth adjacency for our Urology business, while bringing a comprehensive portfolio of products to patients around the world who are seeking tailored treatment options based on their life stage and incontinence severity.”
A strategic move for Boston Scientific
This acquisition aligns with Boston Scientific’s broader strategy of using M&A to drive growth and innovation. At its September 2023 Investor Day event, the company highlighted its focus on acquisitions as a pathway to reinforce category leadership and accelerate entry into faster-growing markets.
Boston Scientific has been one of the most active medtech players in mergers and acquisitions, with recent deals including Relievant Medsystems, Apollo Endosurgery, Farapulse, Baylis Medical and Lumenis. Over the past decade, the company has completed over 40 acquisitions to bolster its portfolio.
Earlier this year, BTIG analysts Marie Thibault and Sam Eiber viewed the Axonics acquisition as a strategic fit, noting that the sacral neuromodulation market is significantly underpenetrated. Medtronic currently dominates the segment, with Axonics holding a 27% market share.
“We believe this portfolio will serve as a nice adjacency for [Boston Scientific’s] Urology business, given its high-growth profile in an underpenetrated market and [Boston Scientific’s] sub-segment in pelvic floor disorders,” they wrote. “We do not anticipate competitive bids given the size of the deal, limited adjacencies with other large-cap MedTech peers, and potential overlap with Medtronic’s existing business.”
Boston Scientific transitions Axonics leadership
As part of the acquisition agreement, significant changes to Axonics’ leadership structure took effect upon the acquisition’s closure. All Axonics’ board of directors members, including Michael Carrel, Raymond Cohen, David Demski, Jane Kiernan, Esteban López, Robert McNamara and Nancy Snyderman, stepped down from their roles. Vance Brown and Jonathan Monson subsequently filled the positions.
Additionally, the roles of several Axonics executives, including CEO Cohen, Alfred Ford, Jr., Kari Keese, Rinda Sama, and John Woock, were ended. Boston Scientific’s leadership team, including CEO Michael Mahoney, CFO Daniel Brennan and Monson, assumed executive roles in the newly integrated company.
Cohen entered into a separation agreement with Boston Scientific as part of his departure, entitling him to severance payments and benefits. These terms were previously disclosed in Axonics’ 2024 annual report filed with the SEC in April 2024.
Financial impact
Boston Scientific projects the acquisition to have an immaterial impact on adjusted earnings per share in 2024 and 2025, with accretion expected in subsequent years. On a GAAP basis, the deal is anticipated to be less accretive or more dilutive due to amortization expenses and acquisition-related charges.
Axonics reported revenues of $366 million in 2023, marking a 34% increase over the previous fiscal year. The acquisition is expected to strengthen Boston Scientific’s urology business and broaden its patient-centric solutions for chronic conditions portfolio.
With this acquisition finalized, Boston Scientific reinforces its position in urology and pelvic health medtech.
