Stryker has entered into a definitive agreement to acquire the assets of the Neurovascular division of Boston Scientific in an all cash transaction for $1.5bn, which includes $100m of milestone payments.
The purchase price also reflects consideration for the present value of the future tax benefit for Stryker based on the asset purchase structure of the transaction.
Under the terms of the agreement, Boston Scientific will receive $1.4bn at closing with additional consideration of up to $100m payable upon specified milestone events.
The events include the commercialisation of Target detachable coils used to treat hemorrhagic stroke, and the transfer of specific manufacturing facilities related to the Neurovascular operation to Stryker, which is anticipated to occur over a 24-month period following the closing.
Stryker chairman, president and CEO Stephen MacMillan said that the acquisition of Boston Scientific Neurovascular is an important strategic move as it positions stryker as a provider in the neurovascular space, which they believe is well positioned to remain one of the innovative sectors in medical technology.
“Going forward, the proposed acquisition allows us to broaden product offerings and relevance to these customers and over time, we believe will afford us with a competitive advantage,” MacMillan said.