Fresenius Medical Care AG & Co. KGaA said on Monday it would acquire NxStage Medical Inc. for around $2 billion to boost its kidney dialysis business.
The German company, which is the world's largest provider of dialysis products and services, said it would acquire all outstanding shares of NxStage for $30 a share. The deal has been approved by NxStage's board, but still requires approval by NxStage stockholders and regulators, Fresenius Medical Care said in a statement.
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NxStage, headquartered in Lawrence, Massachussetts produces products aimed at the treatment of end-stage kidney disease and acute kidney failure. The company posted revenues of $366 million in 2016.
Fresenius Medical Care said the deal would be cash and debt financed, with before-tax cost synergies of around $80-$100 million expected over three to five years. The acquisition will likely involve intergration costs of around $150 million, the German company said.
Fresenius Medical Care is part of German healthcare company Fresenius SE & Co. KGaA (FRE.XE).
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(END) Dow Jones Newswires
August 07, 2017 02:27 ET (06:27 GMT)