It took close to 5 months, but Boston Scientific ($BSX) has closed its $275 million bid for C.R. Bard's ($BCR) electrophysiology business, which will help in its continued fight to rebound and return to robust revenue growth.
Electrophysiology is rapidly expanding around the world, and Boston Scientific wants a bigger piece of the pie. Its Bard acquisition gives the Massachusetts device giant additional devices in the space focused on cardiac catheter ablations, recording and cardiac mapping, plus therapeutic and diagnostic catheters. Boston Scientific said the deal gives it a market already worth $2.5 billion and growing 10% each year.
Boston Scientific has made great strides righting the ship, but it isn't quite there yet. Revenue for the 2013 third quarter was flat at $1.7 billion, and the company lost $5 million, but both results are significant improvements after years of reorganization, layoffs, and bids to snatch up companies and business lines to accelerate diversification. At the same time, Boston Scientific has disclosed plans to eliminate between 1,100 and 1,500 jobs beginning in the fourth quarter, with a goal of accelerating the company's improved performance.
During Q3, electrophysiology sales declined at Boston Scientific, so the Bard buy should help it grow the division, initially through sheer product volume.
Meanwhile, Boston Scientific recently won a CE mark for its Lotus transcatheter aortic valve replacement, bringing it into competition in another hot space that includes rivals Edwards Lifesciences ($EW) and Medtronic ($MDT).
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