(Reuters) -Medical devices maker Boston Scientific said on Tuesday it would buy private medical tech company Relievant Medsystems for an upfront cash payment of $850 million, gaining access to an FDA-cleared therapy for chronic pain.
The Massachusetts-based company is also obliged to pay Relievant additional undisclosed payments based on sales performance over the next three years.
The deal is the latest in a string of acquisitions by Boston Scientific, which makes pacemakers, stents and catheters, to boost its portfolio of devices.
Boston Scientific in February completed an acquisition of Chinese medical technology company Acotec Scientific for a total cash payment of about $523 million. Last year, it bought Apollo Endosurgery for $417 million to expand its portfolio of gastric devices.
Relievant's Intracept system is the only U.S. Food and Drug Administration (FDA)-cleared treatment for vertebrogenic pain — a form of chronic low back pain.
Intracept uses targeted radiofrequency energy to stop some nerves in the spine from transmitting pain signals to the brain.
Relievant is expected to generate sales in excess of $70 million in 2023, Boston Scientific said, adding that it expects the deal to slightly add to 2025 adjusted earnings, with its contribution increasing thereafter.
Boston Scientific expects to close the transaction in the first half of 2024.
(Reporting by Pratik Jain in Bengaluru; Editing by Shilpi Majumdar)