On March 30, 2017, Boston Scientific (BSX) announced a definitive agreement to acquire Symetis for $435 million in cash. The acquisition is expected to be completed by 2Q17. It’s expected to be slightly earnings accretive in 2018 and increasingly accretive from then on.
Strategic benefits and opportunities of the deal
Symetis is a privately-held, Switzerland-based structural heart company with around 300 employees around the globe. It manufactures minimally-invasive TAVI (transcatheter aortic valve implantation) devices.
The product portfolio includes Acurate TA and Acurate Neo-TF valve systems technologies that are used in the treatment of high-risk aortic valve stenosis patients. The products are currently sold outside the US, in Europe, and in some other countries. In 2016, Symetis generated sales of ~$38.4 million.
According to Dr. Ian Meredith, executive vice president and global chief medical officer of Boston Scientific, “The steps we are taking reflect our commitment to being a leader in TAVI and structural heart technologies now and over the long-term, as we broaden our portfolio and pipeline to address the needs of our global healthcare providers and their patients.”
Dr. Meredith also noted: “The Acurate family of valve products is strongly complementary to our cornerstone Lotus valve platform, and this compelling combination of technologies will allow us to provide interventional cardiologists and cardiac surgeons with multiple TAVI offerings for varying patient pathologies and anatomy.”
Boston Scientific has been making a number of strategic acquisitions, which have been in line with other major medical device companies in the US including Medtronic (MDT), Abbott Laboratories (ABT), and Stryker (SYK), amid the changing landscape of healthcare and increasing competition.
Notably, the Vanguard S&P 500 ETF (VOO) invests approximately 0.18% its portfolio in Boston Scientific.