Boston Scientific (NYSE:BSX) said today that it agreed to pay $210 million for EndoChoice (NYSE:GI) and its line of devices for treating gastrointestinal disease.
The $8-per-share offer is slated to close by the end of the year, the companies said. EndoChoice took itself public in June 2015 with an IPO that brought in some $96 million.
“The addition of EndoChoice products and services to our portfolio supports our strategy to provide comprehensive solutions to gastroenterology caregivers and the patients they serve,” Boston Scientific endoscopy president Art Butcher said in prepared remarks. “We expect the acquisition to expand our leadership into new categories in the endoscopy market, and to drive strong, continued growth of our endoscopy business.”
“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, and delivers immediate value for our shareholders,” added EndoChoice founder & CEO Mark Gilreath.
Boston Scientific said it expects the deal to be neutral to adjusted earnings per share next year and accretive after that. Alpharetta, Ga.-based EndoChoice put up sales of $75 million during the 12 months ended June 30.
Marlborough, Mass.-based Boston said it will announce its strategic plans for EndoChoice’s Fuse full-spectrum endoscope, which features 3 small cameras designed to provide a 330° view; the company claims that’s nearly double the range of typical colonoscopy devices. Fuse won FDA 510(k) clearance in the U.S. in June 2013. EndoChoice also makes the Fuse gastroscope, which has 2 cameras designed to expand the field of view from 150° with standard gastroscopes to 245°.
The news sent GI shares soaring some 88.9% in pre-market trading today, to $7.97 per share.
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