Boston Scientific has signed a definitive agreement to buy Bard EP, the electrophysiology (EP) unit of C.R. Bard, for $275m, as part of its strategy to improve capabilities in the growing market for advanced electrophysiology procedures.
Following the customary closing conditions, Boston Scientific expects to complete the deal in the second half of 2013.
This deal will enable Boston to offer a portfolio of solutions for cardiac catheter ablations and other EP tools, which can diagnose and treat several heart conditions.
According to the company, through this acquisition, it would be able to add Bard EP's commercial team and complementary portfolio, including catheter and recording device technologies, which will enable it to provide a comprehensive offering to the fast growing global EP market.
The global market for electrophysiology is estimated to be worth $2.5bn and is growing at nearly ten percent every year.
Boston Scientific president and CEO Mike Mahoney noted that the company expects this acquisition to accelerate the expansion of its global electrophysiology business and is pleased to welcome Bard EP to the Boston Scientific team.
"We believe the innovation and global reach that Bard EP delivers will meaningfully advance our position in this fast-growing market, enabling us to more effectively serve the needs of patients who suffer from cardiac arrhythmias," Mahoney added.
Following completion of the acquisition, Bard EP will become part of the existing Boston Scientific EP business within its Rhythm Management unit.
Bard EP provides advanced therapeutic catheters, diagnostic catheters, electrophysiology recording systems and intracardiac access devices.
Headquartered in Lowell, Massachusetts, it has almost 180 employees in its worldwide operations and generated sales of $111m in fiscal 2012.
According to the definitive agreement, Boston Scientific will make an up-front payment of $275m at the close of the transaction.
Boston Scientific expects the net impact of this deal on adjusted earnings per share to be immaterial for 2013 and approximately one cent accretive in 2014, and dilutive on a GAAP basis in both years due to acquisition-related net charges and amortisation, which will be determined following closure of the deal.