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Boston Scientific on Thursday announced that it has agreed to acquire Preventice Solutions for $925 million upfront in cash plus up to $300 million in a potential commercial milestone payment, a move that will see it gain the latter's BodyGuardian family of wearable cardiac monitors for adult and paediatric patients. Scott Olson, head of Boston Scientific's rhythm management division, said the transaction gives the company "a foothold in the high-growth ambulatory electrocardiography space, which strongly complements our recent entrance into the implantable cardiac monitor market."
According to Boston Scientific, Preventice recorded net sales of $158 million in 2020, representing a 30% increase from the previous year. It added that Preventice's portfolio of mobile cardiac health solutions and services range from ambulatory cardiac monitors, including short and long-term Holter monitors, to cardiac event monitors and mobile cardiac telemetry.
The company's latest remote monitoring system within the BodyGuardian portfolio is the BodyGuardian MINI PLUS, which has multiple electrode options intended to enhance rhythm detection and can be used in all modalities of short and long-term monitoring. These remote monitoring systems are combined with BeatLogic deep learning algorithms that "detect, classify and interpret variations in heart rhythm data with high beat-detection sensitivity and positive predictive value," Boston Scientific said.
Boston Scientific, which has been an investor in Preventice since 2015, currently holds an equity stake of about 22% that is expected to result in a net payment of roughly $720 million upon closing, and a milestone payment of up to around $230 million. The acquisition, projected to close by mid-2021, is anticipated to be immaterial to adjusted earnings per share in 2021, accretive by at least $0.01 in 2022 and increasingly accretive thereafter, Boston Scientific said.
For related analysis, see Wider View: Boston zooms in after Philips, Hillrom in mobile heart diagnostics; iRhythm next target?
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