Medical devices company Boston Scientific Corp. (BSX) agreed Wednesday to acquire the global surgical business of Israel-based Lumenis LTD from an affiliate of Baring Private Equity Asia (BPEA) for an upfront cash payment of $1.07 billion, subject to closing adjustments.
Lumenis is a privately-held company that develops and commercializes energy-based medical solutions. However, BPEA will retain ownership of the Lumenis global aesthetics and ophthalmology businesses.
The Lumenis surgical business includes premier laser systems, fibers and accessories used for urology and otolaryngology procedures along with its proprietary MOSES laser technology.
The acquisition of a leading laser technology will expand the global kidney stone management portfolio of Boston Scientific. The MOSES laser technology will be paired with the LithoVue Single-Use Digital Flexible Ureteroscope and comprehensive kidney stone management portfolio of Boston Scientific.
Worldwide, more than one in 10 adults develop kidney stones each year with up to 50 percent of patients having a repeat stone within five years of the first occurrence. Laser lithotripsy is a leading modality for minimally-invasive surgery of kidney and urinary stones, whether through flexible ureteroscopy or percutaneous nephrolithotomy.
Boston Scientific has had a relationship with Lumenis for more than 20 years and currently sells the Lumenis urology laser portfolio in the U.S. and Japan through a distribution arrangement.
Upon completion of the acquisition, Boston Scientific will sell these lasers and fibers as well as the otolaryngology laser portfolio to all geographies including high-growth regions like China.
The company expects to complete the transaction in the second half 2021, subject to customary closing conditions. The impact to adjusted earnings per share is expected to be immaterial in 2021, approximately two cents accretive in 2022 and increasingly accretive thereafter. On a GAAP basis, the transaction is expected to be dilutive in 2021 and less dilutive or increasingly accretive thereafter.
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