Boston Scientific ($BSX) has added Silver Lake co-founder David Roux to its board of directors, installing a veteran private equity investor with a long track record of betting on technology as the company works to diversify its offerings.
Roux will join Boston Scientific in January, replacing no one as the company stretches its board from 10 to 11 members. In his 14 years with the private equity firm, Roux has helped steer the likes of Skype, CDW, Go Daddy and Zynga, growing Silver Lake to encompass more than $20 billion in assets.
His résumé is light on medical device investments, but that's where Boston Scientific needs the least help. Instead, the company's move to recruit a well-traveled Silicon Valley investor is a tacit acknowledgement of how the healthcare industry is changing. Like market leader Medtronic ($MDT), Boston Scientific is looking to deepen its stake in software-assisted medical technology, and Roux's expertise will likely come in handy as the company weighs its next M&A moves.
Meanwhile, Boston Scientific is already in the midst of a multifaceted turnaround plan that involves a fair amount of dealmaking. The company is facing strong headwinds in its banner cardiac rhythm devices, and management is working to stave off flattening demand with buyouts in high-growth spaces like electrophysiology, patient monitoring and renal denervation.
At the same time, the company is cutting thousands of jobs in an effort to become a more nimble operation, all in accordance with CEO Mike Mahoney's plan to reverse the sluggish company's fortunes. It's been a success so far, as Boston Scientific has narrowed its losses in consecutive quarters while its shares have roughly doubled since January.
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