In a move that would significantly boost its capabilities in the fast-growing market for advanced electrophysiology procedures, Boston Scientific Corporation (NYSE: BSX) has entered into a definitive agreement to acquire Bard EP, the electrophysiology (EP) business of C.R. Bard, for $275 million in cash. The company expects to close the transaction in the second half of 2013, subject to customary closing conditions.
This transaction supports Boston Scientific's strategy to provide a robust portfolio of solutions for cardiac catheter ablations and other EP tools to diagnose and treat a variety of conditions in which the heart beats abnormally. The addition of Bard EP's strong commercial team and complementary portfolio, including catheter and recording device technologies, would enable Boston Scientific to better serve the rapidly growing global EP market with a stronger and more comprehensive offering. Electrophysiology is a $2.5 billion global market that is growing at nearly 10 percent annually.
"We expect this acquisition to accelerate the expansion of our global electrophysiology business and we are pleased to welcome Bard EP to the Boston Scientific team," said Mike Mahoney, president and chief executive officer, Boston Scientific. "We believe the innovation and global reach that Bard EP delivers will meaningfully advance our position in this fast-growing market, enabling us to more effectively serve the needs of patients who suffer from cardiac arrhythmias."
Bard EP would become part of the existing Boston Scientific EP business within the company's Rhythm Management unit.
Headquartered in Lowell, Mass., with nearly 180 employees around the world, Bard EP offers a comprehensive portfolio including advanced therapeutic catheters, diagnostic catheters, electrophysiology recording systems and intracardiac access devices. Bard EP generated sales of $111 million in 2012.
The agreement calls for an up-front payment of $275 million, payable upon transaction closing. Boston Scientific currently expects the net impact of this transaction on adjusted earnings per share to be immaterial for 2013 and approximately one cent accretive in 2014, and dilutive on a GAAP basis in both years as a result of acquisition-related net charges and amortization, which will be determined following the closing.