Boston Scientific to buy Bard's electrophysiology unit for $275 million

Boston Scientific announced a definitive agreement on Friday to acquire C.R. Bard's electrophysiology (EP) business for $275 million in cash. The device maker said it expects the transaction to close before the end of the year, after which Bard EP would become part of the existing Boston Scientific EP business within the Rhythm Management unit.

"We expect this acquisition to accelerate the expansion of our global electrophysiology business," remarked Boston Scientific CEO Mike Mahoney. The company said the transaction supports its strategy to provide solutions for cardiac catheter ablations and other EP tools to diagnose and treat a variety of conditions involving cardiac arrhythmias.

Boston Scientific, which noted that the $2.5-billion global electrophysiology market is growing at nearly 10 percent annually, predicted that the net impact of the acquisition would be negligible on its 2013 adjusted earnings and approximately one cent accretive in 2014. Bard EP's portfolio includes advanced therapeutic catheters, diagnostic catheters, electrophysiology recording systems and intracardiac access devices. The unit generated sales of $111 million in 2012, according to Boston Scientific.

Meanwhile, Bard CEO Timothy Ring said the "divestiture is consistent with our strategic plan," and indicated that by exiting the EP business, the company will be better positioned to direct resources "toward pursuing opportunities where we believe we can achieve sustainable long-term leadership." Bard expects the transaction to be five cents dilutive to its 2013 adjusted earnings per share.

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