Boston Scientific to acquire medical technology company Apollo Endosurgery

Boston Scientific has agreed to acquire Texas-based medical technology company Apollo Endosurgery in an all-cash transaction with an enterprise value of nearly $615 million.

As per the terms of the deal, shareholders of the Nasdaq-listed Apollo Endosurgery will be offered $10 per share by Boston Scientific. The deal has been approved unanimously by the company’s board of directors with the acquisition price being a premium of nearly 67% to the closing price of its common stock on 28 November 2022.

The transaction is expected to help Boston Scientific enter the endobariatric market, increase its endoluminal surgery portfolio, and add certain endobariatric technologies.

Apollo Endosurgery to be acquired by Boston Scientific. Photo courtesy of Boston Scientific Corporation.

Apollo Endosurgery develops next-generation, less invasive endoluminal surgery procedural devices used to close gastrointestinal defects, manage gastrointestinal complications and treat obesity in patients.

Offered in more than 75 countries, Apollo Endosurgery’s products include suture-based X-Tack Endoscopic HeliX Tacking System, OverStitch Endoscopic Suturing System, OverStitch Sx Endoscopic Suturing System, and the Orbera Intragastric Balloon for endoscopic weight management.

Mike Jones — Boston Scientific Endoscopy senior vice president and president, said: “Endoluminal surgery is an emerging field and a core focus for our Endoscopy business.

“We intend to expand our global capabilities in ELS with the differentiated innovation that Apollo Endosurgery offers, and we will continue to focus on procedural adoption as well as professional education in this exciting space.

“This acquisition also enables us to enter a new adjacency – the endobariatric market – and deliver strong, continued growth across our business.”

Post-closing, Apollo Endosurgery will become a fully-owned subsidiary of Boston Scientific.

Apollo Endosurgery is anticipated to generate net sales of around $76 million in 2022 due to the expected growth in its endoscopic suturing system franchise.

In July 2022, the US Food and Drug Administration granted de novo clearance to Apollo Endosurgery-developed devices, namely Apollo ESG, Apollo ESG Sx, Apollo REVISE, and Apollo REVISE Sx Systems for endoscopic sleeve gastroplasty and endoscopic bariatric revision procedures.

The transaction is expected to close in the first half of 2023, subject to approval by a majority of Apollo Endosurgery’s stockholders, regulatory approvals, and certain customary closing conditions.

Piper Sandler & Co is acting as financial advisor to Apollo Endosurgery while Cooley is serving as legal advisor.