Boston Scientific to buy Axonics

Deal for medical technology firm valued at $3.7b

Boston Scientific Corp. is acquiring Axonics Inc., a maker of devices to treat urinary and bowel dysfunction, in a transaction valued at $3.7 billion.

The company said it will pay $71 a share in cash for the medical technology firm, according to a statement on Monday. That’s about 23 percent higher than Axonics’ Friday closing price of $57.57 a share.

Boston Scientific stock was little changed Monday but Axonics shares soared more than 20 percent.

Axonics boosted sales 42 percent to $342.6 million in sales in the 12 months through September. Acquiring the company will help Boston Scientific keep up a growth rate that saw it boost revenue about 10 percent to $13.8 billion during the same period.

The transaction was “reasonably” priced in implying a valuation of 7.7 times sales estimates for this year, according to Bloomberg Intelligence analyst Matt Henriksson. Boston Scientific, which makes stents and pacemakers, is poised for more growth with elective surgeries likely returning to prepandemic levels, and this deal will add to that, Henriksson said.

The purchase, which should close in the first half of the year, isn’t expected to materially impact Boston Scientific’s 2024 adjusted earnings per share and will add to them thereafter.

The deal gives Boston Scientific access to a product portfolio that includes a device that delivers electrical stimulation to restore communication between the brain and the bladder. Almost 30 million Americans over 40 have symptoms of an overactive bladder and another 19 million adults have fecal incontinence. These conditions impact mental health, sleep, productivity, and social activities, Boston Scientific said in the statement.