Buying EndoChoice Holdings will allow Boston Sci to expand its successful endoscopy business.
Boston Scientific said Tuesday that it will launch a tender offer of $8 per share—a roughly $210 million purchase—EndoChoice Holdings.
Based near Atlanta, EndoChoice is a $75 million a year business with products including endoscopic imaging systems, devices, and infection control products. It will join Boston Sci’s existing endoscopy business.
"The addition of EndoChoice products and services to our portfolio supports our strategy to provide comprehensive solutions to gastroenterology caregivers and the patients they serve," Art Butcher, senior vice president and president of Boston Scientific’s endoscopy business, said in a news release.
"We expect the acquisition to expand our leadership into new categories in the endoscopy market, and to drive strong, continued growth of our endoscopy business,” Butcher said.
Endoscopy has been a solid performer for Boston Scientific’s business. The endoscopy business brought in $755 million in sales during the first half of 2016, an 11% increase from a year before. Overall Boston Sci sales were up 13% year-over-year, to $4.09 billion, during the same period.
The EndoChoice purchase is expected to close during the final three months of 2016, pending customary closing conditions. Boston Sci says it plans to “evaluate strategic options,” corporate speak for seeking a potential sale, of EndoChoice’s Full Spectrum Endoscopy (FUSE) colonoscope, which enables doctors to better visualize colonoscopies.