US-based Boston Scientific has finalised its $275m acquisition of CR Bard's electrophysiology business, aimed at enhancing its capabilities in the growing market for advanced electrophysiology procedures (EP).
The acquisition enables Boston Scientific to provide a broader portfolio of EP tools, including solutions for cardiac catheter ablations, taking almost five months to complete.
This deal will enable Boston Scientific to offer a portfolio of solutions for cardiac catheter ablations and other EP tools, which can diagnose and treat several heart conditions.
The global market for electrophysiology is estimated to be worth $2.5bn and is growing at nearly 10% every year.
Boston Scientific electrophysiology general manager Pete Sommerness said completing this transaction is an important part of company's global strategy to grow and transform its EP business.
"We believe that the complementary capabilities that this transaction brings, including expertise in capital equipment sales and service, will enable us to offer more complete solutions to help electrophysiologists diagnose and treat patients with cardiac arrhythmias," Sommerness said.
The company believes that this transaction will help accelerate launches of key EP technologies such as the recently approved IntellaTip MiFi XP ablation catheter and next-generation Rhythmia mapping system.
Recently Boston Scientific has disclosed its plans to eliminate between 1,100 and 1,500 jobs beginning in the fourth quarter, for strengthening its operational effectiveness and efficiency and to support new growth investments.
Boston Scientific has also acquired China Food and Drug Administration approval for its Alair bronchial thermoplasty system, designed to treat severe asthma and won a CE mark for its Lotus transcatheter aortic valve replacement.
The US-based medical device maker expects the net impact of this deal on adjusted earnings per share to be immaterial in 2013 and approximately one cent accretive in 2014, and dilutive on a GAAP basis in both years as a result of acquisition-related net charges and amortisation, which will be determined subsequent to deal closing.
According to GlobalData estimates, the electrophysiology market in the US was valued at $526m in 2012 and is expected to grow at a CAGR of 4.3% to reach $704m by 2019.
Image: Boston Scientific's corporate headquarters in Natick, Massachusetts, US. Photo: courtesy of Boston Scientific Corporation.