Boston Scientific Agrees to $615M Acquisition of Apollo Endosurgery

Boston Scientific, a medical technology company, agreed to buy Texas-based Apollo Endosurgery, a firm that develops, manufactures and markets minimally invasive medical devices, for $615 million.

Boston Scientific will pay $10 per share, a premium of 67% above the closing price on November 28, with cash and available credit lines. The deal is expected to close in the first half of 2023.

“While we are surprised at the premium paid for this acquisition, we expect these systems to complement BSX’s existing Endoscopy portfolio,” BTIG analyst Marie Thibault wrote in a research note.

The Apollo Endosurgery product portfolio includes devices used during endoluminal surgery (ELS) procedures to close gastrointestinal defects, manage gastrointestinal complications, and aid in weight loss for patients suffering from obesity.

Boston Scientific expects no material impact to its adjusted earnings per share in 2023, and slightly accretive thereafter. The impact to GAAP earnings per share is expected to be less accretive, or more dilutive due to amortization expense and acquisition-related net charges.

Piper Sandler & Co. is serving as financial advisor and Cooley LLP is serving as legal advisor to Apollo.