Another billion-dollar tuck-in for Boston

Boston Scientific’s management has spoken in doom-laden tones of the effect Delta variant Covid-19 is having on elective procedures, and has hinted to analysts that it might not meet its third-quarter sales growth forecast of 12-14% as a result. Its acquisition of the Canadian group Baylis Medical Company for $1.75bn cash today is therefore a way of guarding against, or at least making up for, a revenue shortfall. Baylis is squarely in Boston’s cardiovascular wheelhouse as a manufacturer of minimally invasive products to aid in procedures like cardiac ablation, left atrial appendage closure and mitral valve intervention. It is growing at double-digit rates, Boston says, and is expected to generate revenues approaching $200m next year. The purchase of Baylis is Boston’s third $1bn-plus deal this year – notable given that the group has only done nine such deals in the past quarter century. And more might be on the way; Boston has repeatedly stated its intention of growing through acquisitions. At the end of June Boston had $2.7bn cash on hand, and investors might now be starting to wonder how deep its pockets are. 

Boston's $1bn-plus deals of the last 25 years
Date Target Value ($bn) Focus Vantage coverage
Oct 2021 Baylis Medical Company  1.8 Cardiology -
Sep 2021 Surgical business of Lumenis 1.1 Surgery; general hospital & healthcare supply Boston Scientific’s next move
Jan 2021 Preventice Solutions 1.2 Cardiology; patient monitoring Boston adds to furious deal-making pace
Aug 2019 BTG 4.2 Cardiology; surgery; neurology; radiology Boston bid for BTG shows dreams can come true
Aug 2015 Men's Health business of American Medical Systems 1.7 Urology Endo exits medtech – almost
Jun 2012 Cameron Health 1.4 Cardiology Boston Scientific remakes itself to face the future
Apr 2006 Guidant 27.0 Cardiology; radiology -
Sep 1998 Schneider 2.1 Cardiology -
Apr 1997 Target Therapeutics 1.1 Cardiology; neurology -
Source: Evaluate Medtech.

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