Boston Scientific aims to acquire Lumenis’ global surgical laser business, through a $1.07 billion deal that will incorporate its systems for ear, nose and throat procedures and its Moses laser treatment for breaking apart kidney stones.
The medtech company has been a commercial partner with Lumenis for more than 20 years, and has previously distributed Lumenis’ products in the U.S. and Japan. Now, Boston Scientific plans to combine those laser systems with other urologic devices in its lineup.
"The Moses laser technology, paired with our LithoVue single-use digital flexible ureteroscope and comprehensive kidney stone management portfolio, will enable execution of our strategy for our stone franchise," said Meghan Scanlon, Boston Scientific’s president of urology and pelvic health.
"With double-digit compound annual growth from 2015 to 2019, we look forward to adding the innovative Lumenis laser portfolio, talented employees and surgical laser center of excellence to our organization,” Scanlon said.
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The acquisition will also expand Boston Scientific’s footprints in Europe and Asia, she added, while Lumenis’ total surgical business is expected to generate about $200 million in net sales this year. The Israel-based company’s corporate owners, Baring Private Equity Asia, will retain ownership of Lumenis’ global aesthetics and ophthalmology divisions.
Lumenis’ Moses system targets oversized kidney stones through a minimally invasive lithotripsy procedure, by locating the stone with a scope and using a laser to break it apart. The companies estimate that more than 1 in 10 adults develop kidney stones each year.
Following completion of the upfront cash deal, expected in the second half of this year, Boston Scientific plans to sell Lumenis’ laser and fiber optics systems worldwide.
Earlier this week, Boston Scientific closed its deal for Preventice, maker of wearable heart monitors, through a transaction that on paper included $925 million in upfront cash plus up to $300 million in commercial milestone payments but evened out to about $720 million upfront and $230 in milestones when accounting for the company’s previous 22% equity stake.