Boston Scientific acquires BTG in £3.3 billion MedTech deal

The US-based medical devices company announced its planned merger with British rival in a move that will see it significant expand its product offering.

Boston Scientific
Source: Bloomberg

Boston Scientific announced that it will acquire British rival BTG for £3.3 billion ($4.2 billion) on Tuesday.

‘The acquisition of BTG and its rapidly growing peripheral interventional portfolio is an exciting extension of our category leadership strategy that will augment our capabilities in important areas of unmet need such as cancer and pulmonary embolism,’ Chairman and CEO of Boston Scientific Mike Mahoney said.

‘We are confident that the addition of these therapies to our portfolio will ultimately advance patient care in ways that could not be realized by either company alone, while also allowing us to realize substantial revenue and cost synergies and provide a strong return for investors,’ he added.

Boston Scientific boosts tech offering

UK-based BTG develops commercial medical tech products that are used in a variety of minimally-invasive surgeries that target cancer and vascular diseases, as well as acute care drugs.

The acquisition by Boston Scientific will see it expand its already large array of medical devices that includes stents, which open damaged blood vessels and reduce the chance of a heart attack or stroke occurring.

‘Boston Scientific shares our commitment to transforming patient care, and has a sustained track record of innovation, clinical expertise and global commercial capabilities,’ CEO of BTG Dame Louise Makin said.

‘The combined organization will be well positioned for success, enabling our valuable products to make a real difference to more people around the world,’ she added.

BTG biggest deal since 2005

BTG shareholders will receive a cash consideration of £8.40 a share, with the deal expected to close in the first half of 2019, subject to regulatory and BTG shareholder approval.

Boston Scientific’s offer represents a 50% premium on BTG’s share price and it the biggest deal the medical device manufacturer has made since it acquired rival Guidant back in 2005 in a deal valued at around $25 billion.

Barclays and Shearman & Sterling are acting as financial and legal advisors on behalf of Boston Scientific.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IG Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.

Find articles by writer