Boston Scientific acquiring California cardiac firm for $575M
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Boston Scientific's Marlborough headquarters
Boston Scientific, a medical device manufacturer based in Marlborough, has announced it will purchase the remaining shares of Farapulse, Inc. for a total purchase amount of up to $575 million.
The acquisition will complement the Boston Scientific's current portfolio by adding the FARAPULSE Pulsed Field Ablation System for the treatment of irregular heartbeats and other cardiac arrhythmias, according to a release.
Boston Scientific has been an investor in the Menlo Park, Calif.-based company since 2014 and holds an equity stake of approximately 27%. Therefore, the transaction will consist of upfront payment of approximately $295 million for the 73% stake not yet owned, and up to $92 million upon achievement of certain clinical and regulatory milestones, according to the release.
Considering previous ownership and closing costs, the transaction price consists of $450 million up front, with up to $125 million in additional payments upon the reaching of certain milestones.
The transaction is anticipated to close in the third quarter. When it does, it will not even be the highest-priced acquisition by the Marlborough company this year, with the firm having announced the $1.07-billion acquisition of the global surgical business of Israeli firm Lumenis LTD in March.
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