Boston Scientific To Acquire Remaining 73% Stake In Farapulse - Quick Facts

(RTTNews) - Medical technology firm Boston Scientific Corp. (BSX) announced Thursday it exercised its option to acquire the remaining 73 percent stake in Farapulse, Inc. for an upfront payment of approximately $295 million, up to $92 million upon achievement of certain clinical and regulatory milestones as well as additional revenue-based payments for the next three years.

Boston Scientific has been an investor in Farapulse since 2014 and currently holds an equity stake of approximately 27 percent.

The acquisition will complement the existing Boston Scientific electrophysiology portfolio to include the Farapulse Pulsed Field Ablation (PFA) System, a non-thermal ablation system for the treatment of atrial fibrillation (AF) and other cardiac arrhythmias.

The Farapulse PFA System is intended to enable physicians to precisely ablate cardiac tissue while minimizing procedural complications, and real-world and clinical evidence from trials throughout Europe have demonstrated encouraging, positive results.

Farapulse became the first company to commercialize a cardiac PFA technology after receiving CE Mark for Farapulse PFA System in Europe in the first quarter of 2021.

On an adjusted basis, the transaction is expected to be slightly dilutive to adjusted earnings per share in 2021 and 2022, which Boston Scientific expects to offset via internal cost efficiencies and trade-offs.

On a GAAP basis, the transaction is expected to be more dilutive due to amortization expense and acquisition-related charges, except for a one-time gain to be recognized at closing associated with the previously held equity interest in Farapulse. The transaction is anticipated to close in the third quarter of 2021, subject to customary closing conditions.