Boston Scientific has entered into an agreement with Endo International to acquire American Medical Systems' (AMS) male urology medical device businesses for $1.6bn.
Under the deal, Boston will acquire the urology portfolio, including men's health and prostate health businesses, which will be integrated into its urology and women's health segment after the transaction closes.
Endo is also eligible to receive additional payment of $50m based on Boston achieving certain product sales in the men's health and prostate health businesses in 2016.
In addition, Endo is currently evaluating strategic alternatives for the AMS women's health business.
The deal includes the AMS product portfolio for treating urologic conditions such as benign prostatic hyperplasia (BPH), male stress urinary incontinence and erectile dysfunction.
Boston Scientific president Mike Mahoney said: "The combination of Boston Scientific's urology and women's health and AMS' urology portfolios will create a business with nearly $1bn in annual sales, and enable significant synergies and strong future growth prospects through portfolio innovation and international market expansion."
The AMS product portfolio includes GreenLight XPS and HPS Laser Therapy Systems to treat BPH, the AMS 800 Urinary Control System to treat stress urinary incontinence, as well as AMS 700 Inflatable Penile Prosthesis to treat erectile dysfunction.
According to Boston, the acquired business will complement its kidney stone, pelvic organ prolapse, female stress urinary incontinence and abnormal uterine bleeding treatment portfolios.
The deal does not include AMS women's health business for treating pelvic organ prolapse and female stress urinary incontinence.
Subject to customary closing conditions, the transaction is expected to be closed in the third quarter of 2015.
In 2014, the AMS men's health and prostate health businesses reported sales of $400m and adjusted operating income of $130m, excluding amortisation and certain allocated expenses.
In this transaction, JP Morgan Securities acted as financial advisor to Boston, which intends to finance the acquisition through a combination of existing and newly committed credit facilities.