Boston Scientific acquires Apollo EndosurgeryBoston Scientific (NYSE:BSX) today announced it entered a definitive agreement to acquire Apollo Endosurgery (NSDQ:APEN) for more than $600 million.

The Marlborough, Massachusetts-based company will acquire the endoluminal surgical device maker for a cash price of $10 per share to reflect an enterprise value of approximately $615 million.

Apollo Endosurgery’s product portfolio includes devices used during endoluminal surgery (ELS) procedures to close gastrointestinal defects, manage gastrointestinal complications and aid in weight loss. ELS procedures are a less-invasive alternative to open and laparoscopic surgery for patients with diseases in the gastrointestinal tract or morbid obesity. It also provides a quicker recovery to minimize the risks of surgical complications.

“Endoluminal surgery is an emerging field and a core focus for our Endoscopy business,” Mike Jones, senior VP and president of endoscopy at Boston Scientific, said in a news release. “We intend to expand our global capabilities in ELS with the differentiated innovation that Apollo Endosurgery offers, and we will continue to focus on procedural adoption as well as professional education in this exciting space. This acquisition also enables us to enter a new adjacency – the endobariatric market – and deliver strong, continued growth across our business.”

Apollo Endosurgery anticipates net sales of approximately $76 million in the fiscal year 2022 with significant growth of its endoscopic suturing system franchise, which includes the OverStitch and OverStitch Sx endoscopic suturing systems and the X-Tack endoscopic HeliX taking system.

Boston Scientific expects to complete the transaction in the first half of 2023, which is subject to satisfaction of customary closing conditions. The company’s adjusted earnings per share are expected to be immaterial in 2023 and accretive thereafter. GAAP earnings per share are expected to be less accretive, or more dilutive, due to amortization expenses and acquisition-related net charges.