Boston Scientific To Acquire Relievant Medsystems
(RTTNews) - Medical technology company Boston Scientific Corp. (BSX) announced Tuesday it has entered into a definitive agreement to acquire Relievant Medsystems, Inc., a privately-held peer. The transaction includes an upfront cash payment of $850 million and undisclosed additional contingent payments based on sales performance over the next three years.
Relievant Medsystems has developed and commercialized the Intracept Intraosseous Nerve Ablation System to treat vertebrogenic pain, a form of chronic low back pain.
As the only U.S. Food and Drug Administration-cleared system for vertebrogenic pain, the Intracept system is a minimally invasive, implant-free outpatient procedure. The therapy uses targeted radiofrequency energy to stop the basivertebral nerve from transmitting pain signals to the brain and is designed to improve function and provide long-term relief. Boston Scientific expects to close the transaction in the first half of 2024, subject to satisfaction of customary closing conditions.
Relievant is expected to generate sales in excess of $70 million in 2023 and to deliver year-over-year growth in excess of 50% in 2024. On an adjusted basis, the transaction is expected to be immaterial to adjusted earnings per share (EPS) in 2024, slightly accretive in 2025, and increasingly accretive thereafter.
On a GAAP basis, the transaction is expected to be more dilutive due to amortization expense and acquisition-related charges.
