Boston Scientific to Pay $90M to Buy Rhythmia Medical

Published October 08, 2012

| Reuters

Boston Scientific Corp (BSX) said it has agreed to pay $90 million to buy privately held Rhythmia Medical Inc to gain access to its three dimensional navigation system to assist doctors in performing complex heart procedures on patients with dangerously irregular heart rhythms.

The Rhythmia Medical next generation mapping and navigation system, which is awaiting U.S. approval, would be used in catheter ablations and other electrophysiology procedures on patients suffering from atrial fibrillation and other heart rhythm disorders, Boston Scientific said.

"Electrophysiology is a $2.5 billion market and growing at a double-digit pace, representing a key growth opportunity for us," Boston Scientific Chief Executive Hank Kucheman said in a statement.

In addition to the $90 million payment upon expected closing of the deal later this week, Rhythmia would be entitled to up to an additional $175 million in potential milestone payments through 2017, Boston Scientific said.

The company expects the net impact of the transaction on its adjusted earnings per share to be immaterial for 2013 and 2014 and to be break-even or add to earnings after that.

The Rhythmia deal announced on Monday marks the second acquisition for Boston Scientific in less than three weeks. Last month the company acquired privately-held BridgePoint Medical Inc, which makes a catheter-based systems to treat blocked arteries.

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