(Nov '22) Boston Scientific to Acquire Apollo Endosurgery
November 29, 2022
Boston Scientific Corp. said Tuesday it has agreed to acquire
Apollo Endosurgery Inc. for $10 a share, or about $615 million
in cash. The news sent Apollo's stock, which closed Monday at
$6, up 61% in premarket trade. The company has a portfolio of
devices used in endoluminal surgery procedures to close
gastrointestinal defects, manage gastrointestinal complications
and aid in weight loss for patients suffering from obesity, and is
expected to generate net sales of about $76 million in 2022.
"Endoluminal surgery is an emerging field and a core focus for
our Endoscopy business," said Mike Jones, senior vice president
and president, Endoscopy, Boston Scientific. The deal is expected
to close in the first half of 2023. The deal is expected to be
immaterial to Boston Scientific's per-share earnings in 2023, but
to boost them after that. Boston Scientific shares were not yet
active premarket, but have gained 3% in the year to date,
while the S&P 500 has fallen 17%.