Boston Scientific has notched billions of goodwill write-offs related to its $28 billion acquisition of Guidant Corp., a sign that the medical device titan may have overpaid for the deal.
Medical device giant Boston Scientific (NYSE:BSX) has notched billions in goodwill write-offs related to its 2006 acquisition of Guidant Corp., a signal that the $28 billion purchase price was too high, the Wall Street Journal reported.
Boston Scientific has written off $9 billion in goodwill since 2007, including $3.6 billion in last month's financial report. Most of that was associated with the Guidant merger, although the company's financial statements don't specify, according to the Journal.
Up until the most recent write-off, Boston Scientific's goodwill topped its market capitalization, a "clue" that investors think the company's overvalued, according to the article.