Sundry Photography/iStock Editorial via Getty Images Boston Scientific ( NYSE: BSX ) on Tuesday announced a deal to acquire medical device company Silk Road Medical ( NASDAQ: SILK ) for $27.50 a share, representing an enterprise value of approximately $1.16B.
Subject to customary closing conditions, the deal is expected to close in the second half of 2024 and will bring innovative technology for stroke prevention to Boston Scientific’s ( BSX ) vascular portfolio. Located in Sunnyvale, California, Silk Road Medical ( SILK ) has developed a platform of products to prevent stroke in patients with carotid artery disease through a minimally invasive procedure called transcarotid artery revascularization (TCAR). The TCAR system secured U.
S. FDA approval in 2015 and is supported by several clinical studies demonstrating a reduced risk of stroke and other complications associated with traditional open surgery. The business expects to generate net revenue of approximately $194-198M in 2024, representing 10-12% growth over the prior fiscal year.
The deal is estimated to have an “immaterial” impact to Boston Scientific ( BSX ) adjusted earnings per share in 2024 and 2025, and accretive thereafter. “We expect the impact to GAAP earnings per share to be less accretive, or dilutive, as the case may be, due to amortization expense and acquisition-related net charges,” the company added. Shares of Silk Road Medical ( SILK ) jumped around 23% premarket after the deal announcement Mo.
