Boston Scientific (NYSE:BSX) announced today that it entered into a definitive agreement to acquire the global surgical business of Lumenis for nearly $1.1 billion.
Marlborough, Mass.-based Boston Scientific entered into the agreement with an affiliate of Baring Private Equity Asia (BPEA) to acquire the global surgical business of the privately-held company developing and commercializing energy-based medical solutions. The deal includes an upfront cash payment of $1.07 billion, subject to closing adjustments, according to a news release.
BPEA is slated to retain ownership of the Lumenis global aesthetics and ophthalmology businesses, while Boston Scientific picks up a surgical business expected to bring in 2021 revenues of approximately $200 million. The company expects the deal to be completed in the second half of 2021, with an immaterial impact on adjusted earnings per share this year. EPS impact is expected to be 2¢ accretive in 2022 and increasingly accretive thereafter.
Yokneam, Isreal-based Lumenis’ surgical portfolio includes laser systems, fibers and accessories for urology and otolaryngology procedures, including its proprietary Moses technology for managing patients with kidney stones.
Moses performs laser lithotripsy, using a small, telescope-like device — a ureteroscope — to locate the stone and a laser to then break the stone apart.
“The Moses laser technology, paired with our LithoVue single-use digital flexible ureteroscope and comprehensive kidney stone management portfolio, will enable execution of our strategy for our stone franchise,” Boston Scientific SVP of urology & pelvic health Meghan Scanlon said in the news release. “With double-digit compound annual growth from 2015 to 2019, we look forward to adding the innovative Lumenis laser portfolio, talented employees and surgical laser center of excellence to our organization.
“The acquisition will expand our global footprint throughout Europe and Asia and accelerate the delivery of our robust stone management offerings to more urologists – ultimately serving more patients worldwide – while also improving our top-line growth and margins.”
Boston Scientific has held a relationship with Lumenis for more than 20 years and currently sells the Lumenis urology laser portfolio in the U.S. and in Japan under a distribution agreement. The acquisition, which follows a reported $1 billion takeover of Lumenis by BPEA in 2019 — will allow Boston Scientific to market in high-growth regions like China, too.
“We take great pride in our heritage of innovation in surgical laser solutions which are helping millions of patients worldwide,” Lumenis CEO Tzipi Ozer-Armon said. “Notably the proprietary, patent-protected Moses technology has revolutionized urology laser procedures by improving the clinical efficacy and efficiency for kidney stones. We are confident that Boston Scientific, as a global leader in urology, and our long-time commercial partner, is the best organization to carry this legacy forward.”
Boston Scientific has been active on the M&A front recently, having just days ago completed the acquisition of Preventice Solutions that could be worth up to $1.225 billion while also divesting its BTG Pharmaceuticals business for $800 million.