Medical device maker Boston Scientific to buy Axonics for $3.7 billion
(Reuters) -Medical device maker Boston Scientific said on Monday it had agreed to buy Axonics Inc for $3.7 billion, gaining access to devices used to improve bladder function.
The deal marks Boston Scientific's entry into sacral neuromodulation, a minimally invasive procedure used in the treatment of overactive bladder and fecal incontinence, and is the latest in efforts to scale up its urology business.
Boston Scientific, which makes pacemakers, stents and catheters, will pay $71 in cash per share, representing a 23.3% premium to the Axonics' last close.
Axonics' products, such as Axonics R20 and Axonics F15, are used to deliver sacral neuromodulation therapy, which works by delivering mild electrical pulses to the sacral nerve to restore communication between the brain and the bladder.
The California-based company's portfolio includes Bulkamid, a minimally invasive treatment for urinary incontinence in women.
The deal is expected to close in the first half of 2024.
Axonics expects to deliver net revenue of about $366 million in 2023, Boston Scientific said, adding it anticipates the deal to be add to its urology business in 2024.
Massachusetts-based Boston Scientific has been on an acquisition spree. The company in September agreed to buy privately held Relievant Medsystems for an upfront cash payment of $850 million, gaining access to an FDA-cleared therapy for chronic pain.
Prior to that, it bought Chinese medical technology company Acotec Scientific for about $523 million.
Shearman & Sterling advised Boston Scientific, while J.P. Morgan Securities LLC was the adviser to Axonics.
(Reporting by Sriparna Roy in Bengaluru; Editing by Sriraj Kalluvila)
