Boston Scientific to Acquire Preventice for up to $1.225 Billion

Boston Scientific is planning to purchase privately-held Preventice in a deal that could be worth up to $1.225 billion.

The medical device maker announced this week that it has agreed to acquire Preventice Solutions, who offers a portfolio of mobile cardiac health services.

The deal features a cash payment of $925 million up front and an additional $300 mullion in a potential commercial milestone payment.

Boston Scientific has been an investor in Preventice since 2015 and the company owns a 22% stake in the company currently.

“We are confident that by adding the broad technology portfolio and expertise of Preventice, our combined teams can continue to deliver rapid growth in these highly-attractive markets while also establishing an important adjacency to our core cardiac rhythm management and electrophysiology businesses,” commented Scott Olson, senior vice president and president for Rhythm Management at Boston Scientific.

The acquisition is projected to close by the middle of 2021, but it will be immaterial to adjusted earnings per share this year, said the company. Boston Scientific expects the acquisition to be accretive by at least one cent per share in 2022.

“This acquisition will provide Boston Scientific with a foothold in the high-growth ambulatory electrocardiography space, which strongly complements our recent entrance into the implantable cardiac monitor market and will serve as an important component of our category leadership strategy in cardiac diagnostics and services,” Olson added.

As per Boston Scientific’s press release, cardiovascular disease is the leading cause of mortality globally, accounting for nearly 17.9 million annual global deaths and highlighting the need for early detection and management for individuals who may be at risk of a cardiac event. The company cited the World Health Organization for this statistic.

The Preventice product portfolio includes the BodyGuardian® family of remote, wearable cardiac monitors for adult and pediatric patients. The monitors use a fully-integrated, cloud-based platform supported by an independent diagnostic testing facility, where clinical technicians and artificial intelligence (AI) algorithms provide insights that may lead to improved clinical diagnoses and outcomes. Preventice’s integration of AI and human expertise is designed to enhance physician efficiency and experience.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.