by Gus Iversen
, Editor in Chief | January 26, 2021
Boston Scientific has entered a definitive agreement to acquire Preventice Solutions Inc., a privately-held company offering mobile cardiac health solutions and services, ranging from ambulatory cardiac monitors — including short and long-term Holter monitors — to cardiac event monitors and mobile cardiac telemetry.
The transaction consists of an upfront cash payment of $925 million, and up to an additional $300 million in a potential commercial milestone payment.
Boston Scientific has been an investor in Preventice since 2015 and currently holds an equity stake of approximately 22%, which is expected to result in a net payment of approximately $720 million upon closing and a milestone payment of up to approximately $230 million. Preventice recorded net sales of $158 million in 2020 — a 30 percent growth rate from the previous year.
"This acquisition will provide Boston Scientific with a foothold in the high-growth ambulatory electrocardiography space, which strongly complements our recent entrance into the implantable cardiac monitor market and will serve as an important component of our category leadership strategy in cardiac diagnostics and services — a nearly $2B market anticipated to grow by double digits annually," said Scott Olson, senior vice president and president, Rhythm Management, Boston Scientific. "We are confident that by adding the broad technology portfolio and expertise of Preventice, our combined teams can continue to deliver rapid growth in these highly-attractive markets, while also establishing an important adjacency to our core cardiac rhythm management and electrophysiology businesses."
The Preventice product portfolio includes the BodyGuardian family of remote, wearable cardiac monitors for adult and pediatric patients. The newest remote monitoring system within the Preventice BodyGuardian family, the BodyGuardian MINI PLUS, has multiple electrode options intended to enhance rhythm detection, is waterproof, repositionable, and can be used in all modalities of short and long-term monitoring, as determined necessary by physicians.
Founded in 2007, Preventice Solutions is based in Minneapolis, with offices in Houston and Rochester, Minnesota.
The acquisition is projected to close by mid-2021.