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Medical technology company Boston Scientific has entered into a deal to buy privately-held Baylis Medical, which manufactures tools used in cardiology procedures.

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The medical technology company

Boston scientist

said Wednesday morning that it had struck a deal to buy a private medical device maker called Baylis Medical Company for $ 1.8 billion.

Boston Scientific stock (ticker: BSX) is down slightly, down 0.2% in Wednesday morning trading. The stock is up 18% year-to-date.

Baylis, headquartered in Mississauga, Ontario, specializes in tools used in cardiology procedures. Baylis’ cardiology tools use radio frequency energy to help doctors access the left side of the heart, rather than using the traditional method involving a mechanical needle.

The deal does not include a subsidiary of Baylis called Baylis Medical Technologies, which manufactures medical devices used for radiology and neurosurgery, Baylis said in a statement.

“A leader in many of our industry’s fastest growing markets, we believe Baylis Medical Company will add significant revenue, operating profit, and new research and development capabilities to several Boston Scientific companies, while complementing existing offerings within our electrophysiology and cardiac structure portfolios, ”Boston Scientific CEO Mike Mayoney said in a statement.

Boston Scientific said Baylis will generate net sales “of about $ 200 million” next year, and that year-over-year sales growth for the company has been double-digit each of the past five. years. The company said the deal is expected to be finalized in the first quarter of 2022.

In a memo released early Wednesday, SVB Leerink analyst Danielle Antalffy wrote that the deal would strengthen Boston Scientific’s position in two key cardiology and surgery markets. “Overall, we view this acquisition of Baylis as a low-tech strategic decision to improve or strengthen BSX’s competitive position in both [electrophysiology]—Where BSX has been relatively underperforming due to a previously incomplete catheter product portfolio — and [left atrial appendage closure]”Antalffy wrote.

Antallfy wrote that the deal leaves the company with cash to “pursue technology-driven acquisitions over the next several years.” She rates Boston Scientific’s shares on Market Perform.

In a separate note, BTIG analyst Marie Thibault praised the deal. “We believe this acquisition, the 5th integrated agreement announced this year, fits well into BSX’s portfolio, adding a high-growth asset that complements the company’s electrophysiological ablation portfolio and structural cardiac products,” said wrote Thibault. She is pricing Boston Scientific shares at Buy with a price target of $ 51.

Of the 30 analysts tracked by FactSet who cover Boston Scientific stocks, 25 rate them at Buy or Overweight, while five have Hold or equivalent ratings. The stock closed at $ 42.44 on Tuesday.

Write to Josh Nathan-Kazis at [email protected]