Boston Scientific announced this morning that it has reached a definitive agreement to acquire EndoChoice. The total equity value of the agreement is estimated at $210 million and the transaction is expected to close in the fourth quarter of 2016.

"The addition of EndoChoice products and services to our portfolio supports our strategy to provide comprehensive solutions to gastroenterology caregivers and the patients they serve," said Art Butcher, senior vice president and president, Boston Scientific, endoscopy, in a statement. "We expect the acquisition to expand our leadership into new categories in the endoscopy market, and to drive strong, continued growth of our endoscopy business."

The acquired portfolio will give Boston Scientific a stronger position with a range of gastrointestinal products (including single-use devices like resection and retrieval devices, needles, graspers and infection control kits) as well as pathology services and imaging technologies.
Boston Scientific said it would pay $8 a share in cash for EndoChoice. According to the Wall Street Journal, that represents a 90 percent premium to its closing price of $4.22 a share on Monday.

Boston Scientific has diversified its product offerings in recent years to help pad softening sales in some bread-and-butter areas, such as pacemakers and implanted defibrillators, the journal reports, and its endoscopy business rose 11 percent in the June quarter to $361 million.

"The combination of our broad portfolio of products and services for the gastroenterology physician, with the complementary products and large global infrastructure of the Boston Scientific endoscopy business, creates an enhanced growth platform for both businesses, and delivers immediate value for our shareholders," said Mark Gilreath, founder and CEO of EndoChoice.

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