Continuing its acquisition streak, Marlborough-based medical device manufacturer Boston Scientific has entered into an agreement to purchase Penumbra, a California-based healthcare company, to the tune of $14.5 billion.
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Continuing its acquisition streak, Marlborough-based medical device manufacturer Boston Scientific has entered into an agreement to purchase Penumbra, a California-based healthcare company, to the tune of $14.5 billion.
Penumbra develops and manufactures medical devices to treat blood flow and clot complications caused by heart and blood vessel disorders, including strokes, heart attacks, and aneurysms, according to a Thursday press release from Boston Scientific.
"Penumbra is a well-established company with an experienced, high-performing team, and this acquisition offers Boston Scientific an opportunity to enter new, fast-growing segments within the vascular space," Mike Mahoney, Boston Scientific chairman and CEO, said in the release.
Penumbra’s products assist in blood clot removals and the control of hemorrhaging, such as catheters and coils.
“The addition of Penumbra can expand access for these novel technologies to more patients and customers around the world, further enhancing our revenue and margins over time with proven offerings that have a history of growth and innovation,” Mahoney said in the release.
Boston Scientific will acquire Penumbra for $374 per share through both cash and company stock, totalling the $14.5-billion purchase price. The manufacturer anticipates financing approximately $11 billion in cash.
Once the transaction is completed, Adam Elsesser, Penumbra's chairman and CEO, will join Boston Scientific’s board of directors. The acquisition is expected to be finalized this year.
"Our decades-long development of therapies for challenging medical conditions has focused on deep innovation for complex diseases so that we can offer physicians novel solutions to transform patient care," Elsesser said in the release. "I am grateful for the amazing people who have contributed to this work and look forward to uniting our efforts and shared values as we come together with Boston Scientific."
Boston Scientific is using A&O Shearman, with an office in Boston, and Washington D.C.-based Arnold & Porter Kaye Scholer LLP as legal advisors in the transaction. Penumbra is using Perella Weinberg Partners as financial advisor and Davis Polk & Wardwell LLP as legal advisor. Both are based in New York City.
Boston Scientific’s most recent purchase agreement comes just days after the manufacturer announced it would acquire Valencia Technologies, a California-based company specializing in the treatment of bladder dysfunction.
Mica Kanner-Mascolo is a staff writer at Worcester Business Journal, who primarily covers the healthcare, manufacturing, and higher education industries.
