Boston Scientific completes Axonics acquisition

MARLBOROUGH, Mass. - Boston Scientific Corporation (NYSE:) has finalized its acquisition of Axonics, Inc. (NASDAQ:AXNX), a company specializing in medical devices for urinary and bowel dysfunction, the corporation announced today. The deal, which closed at a purchase price of $71 per share, values Axonics at an equity value of approximately $3.7 billion and an enterprise value of $3.3 billion.

The acquisition is expected to have a neutral impact on Boston Scientific's adjusted earnings per share for 2024 and 2025, with accretive effects anticipated thereafter. On a GAAP basis, the impact is expected to be less positive or more dilutive due to amortization expenses and acquisition-related charges.

Meghan Scanlon, senior vice president and president of Urology at Boston Scientific, expressed enthusiasm for the integration of Axonics, citing the move as a strategic expansion into sacral neuromodulation, complementing Boston Scientific's existing urology portfolio. The acquisition is poised to provide a broader range of treatment options for patients worldwide.

Boston Scientific, a global leader in medical technology for over 45 years, is known for its diverse portfolio of devices and therapies aimed at addressing complex health conditions across various medical fields, including cardiovascular, respiratory, digestive, oncological, neurological, and urological health.

This transaction is a part of Boston Scientific's ongoing strategy to enhance its product offerings and strengthen its position in the medical technology market. The company has a history of advancing medical technologies that improve patient health and reduce healthcare costs.

Investors and interested parties can find additional information about the acquisition on the Boston Scientific investor relations website under the Events and Presentations section.

This news is based on a press release statement from Boston Scientific Corporation. The forward-looking statements contained in the press release are based on current beliefs and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those projected.

In other recent news, Axonics Modulation Technologies (NASDAQ:) Inc. emerged victorious in a patent infringement lawsuit. The jury found no infringement on the three patents in question, related to Axonics' tined leads and temperature sensor technology. This significant win potentially paves the way for Axonics' unhindered operation, free from infringement claims. Piper Sandler, following this legal victory, has maintained its Neutral rating on Axonics with a price target of $71.00. In addition to the patent case, there's an anticipated acquisition of Axonics by Boston Scientific Corporation. The acquisition, expected to be completed in the second half of 2024, follows the completion of a second request from the Federal Trade Commission. According to analysts, this development is being closely monitored by industry observers and could have substantial implications for Axonics' future. These recent developments provide critical insights into Axonics' current standing and potential future trajectory.

InvestingPro Insights

The acquisition of Axonics by Boston Scientific at $71 per share aligns closely with the fair value of $71 suggested by analyst targets, according to InvestingPro data. This indicates that the purchase price was in line with market expectations and professional valuations.

Axonics' strong financial position is evident from InvestingPro Tips, which highlight that the company "holds more cash than debt on its balance sheet" and "liquid assets exceed short term obligations." These factors likely made Axonics an attractive acquisition target for Boston Scientific, as they suggest financial stability and potential for growth.

The acquisition's potential for future growth is supported by Axonics' impressive revenue growth of 26.08% over the last twelve months, as reported by InvestingPro. This growth trajectory, combined with Boston Scientific's extensive resources and market presence, could lead to significant synergies in the urology sector.

It's worth noting that Axonics was trading near its 52-week high at the time of acquisition, with a price-to-book ratio of 5.46, indicating investor confidence in the company's value. While Axonics was not profitable over the last twelve months, analysts predict profitability this year, which could contribute to the deal's expected neutral impact on Boston Scientific's adjusted earnings in the near term.

For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Axonics, providing deeper insights into the company's financial health and market position.

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