Stryker to Buy BSX's Neurovascular Business for $1.5B
BY LAUREN UZDIENSKI, OCTOBER 28, 2010
Boston Scientific announced this morning that they agreed to sell their neurovascular business to Stryker for $1.5 billion in cash, of which $1.4 billion is payable at closing and $100 million will be payable at the achievement of certain milestones. The transaction is expected to close by the end of the year. Stryker is paying 4.5x sales, in line with recent medtech mergers and acquisitions, particularly in this subsegment.
The unit develops and markets less-invasive medical technologies used to treat vascular disease of the brain, including aneurysms and strokes. The business employs approximately 1,150 people and reported 2009 revenues of $348 million. Boston Scientific President and CEO Ray Elliott said that the sale would "refocus our portfolio to . . . leverage existing sales forces with least invasive, cost and comparatively effective medical devices that reduce or eliminate refractory drug regimens."
The announcement follows rumors from August that Stryker planned to buy the company's pain-management unit.
