Boston Scientific has signed a definitive agreement to acquire US-based cardiac monitors provider Preventice Solutions to expand its rhythm management diagnostics portfolio and capabilities.
Preventice has a complete portfolio of mobile cardiac health solutions and services, ranging from ambulatory cardiac monitors to cardiac event monitors, as well as mobile cardiac telemetry.
As part of the agreement, Preventice Solutions will receive an upfront cash payment of $925m and a potential commercial milestone payment of up to $300m.
Since 2015, Boston Scientific has been an investor in Preventice and holds an equity stake of approximately 22%.
Boston Scientific expects that it will result in a net payment of approximately $720m upon closing and a milestone payment of up to $230m.
The BodyGuardian family of remote, wearable cardiac monitors for adult and paediatric patients are part of Preventice product portfolio.
Boston Scientific Rhythm Management senior vice-president and president Scott Olson said: “This acquisition will provide Boston Scientific with a foothold in the high-growth ambulatory electrocardiography space, which strongly complements our recent entrance into the implantable cardiac monitor market and will serve as an important component of our category leadership strategy in cardiac diagnostics and services – a nearly $2b market anticipated to grow double digits annually.
“We are confident that by adding the broad technology portfolio and expertise of Preventice, our combined teams can continue to deliver rapid growth in these highly attractive markets while also establishing an important adjacency to our core cardiac rhythm management and electrophysiology businesses.”
BodyGuardian MINI PLUS, an addition to remote monitoring system within the Preventice BodyGuardian family, has multiple electrode options intended to enhance rhythm detection.
The device is waterproof, repositionable and can be used in all modalities of short and long-term monitoring based on the physicians’ choice.
The acquisition is subject to customary closing conditions and is expected to take place during the middle of this year.
Last September, Boston Scientific signed an investment agreement with privately held medical device company Farapulse with an exclusive option for acquisition.