Global medical technology leader Boston Scientific (NYSE: BSX) said it agreed to acquire med-tech upstart EndoChoice Holdings Inc. (NYSE: GI) for $210 million in cash, at a price of $8.00 per share.
EndoChoice develops and commercializes products and services for specialists treating a wide range of gastrointestinal (GI) conditions. The EndoChoice portfolio includes single-use devices, such as resection and retrieval devices, needles, graspers and infection control kits. The company also has strong positions in pathology services and imaging technologies.
EndoChoice serves more than 2,500 customers in the United States and works with distribution partners in 30 countries. The company was founded in 2008 and is based near Atlanta, Georgia.
EndoChoice generated approximately $75 million in sales in the twelve month period ended June 30, 2016. The EndoChoice imaging portfolio includes the Full Spectrum Endoscopy (FUSE) colonoscope, which enables doctors to better see anatomy and find more lesions during colonoscopies.
“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,” said Art Butcher, senior vice president and president, Boston Scientific, endoscopy. “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.”
“The combination of our broad portfolio of products and services for the gastroenterology physician, with the complementary products and large global infrastructure of the Boston Scientific endoscopy business, creates an enhanced growth platform for both businesses, and delivers immediate value for our shareholders,” said EndoChoice founder and chief executive Mark Gilreath.
The deal is expected to close in the fourth quarter of 2016 subject to customary closing conditions.