Boston Scientific to take full ownership of Preventice Solutions
Boston Scientific, in late January 2021, signed an agreement to take full ownership of mobile cardiac health solutions and services provider Preventice Solutions in a deal that values 100% of the latter at up to $1.25 billion.
The consideration includes $925 million in upfront cash payment and an additional payment of up to $300m based on the achievement of commercial milestones by Preventice Solutions.
With Boston Scientific already holding a stake of around 22% in Minneapolis-based Preventice Solutions, the net payment it is expected to be paid is nearly $720 million and a milestone payment of up to $230 million.
Jon Otterstatter – CEO of Preventice Solutions said: “We have been humbled to provide thousands of physician practices with services based on near real-time clinical data to enable the diagnosis and management of more than one million cardiac patients, without needing to interrupt their daily activities.
“Boston Scientific has been a key investor in Preventice for more than five years and we believe the company has the commercial reach, diagnostics expertise and operational infrastructure to bring these advanced monitoring technologies to more patients worldwide.”
Boston Scientific to take full ownership of Preventice Solutions. Photo courtesy of Boston Scientific Corporation.
Preventice Solutions’ solutions and services range from ambulatory cardiac monitors to cardiac event monitors and mobile cardiac telemetry.
Its product portfolio features the BodyGuardian range of remote, wearable cardiac monitors for adult and pediatric patients.
The newest product in the range – BodyGuardian MINI PLUS is claimed to have various electrode options to improve rhythm detection.
The BodyGuardian remote monitoring systems are clubbed with BeatLogic deep learning algorithms to identify, classify, and interpret changes in heart rhythm data with high beat detection sensitivity and also positive predictive value.
Scott Olson – senior vice president and president of Rhythm management at Boston Scientific said: “This acquisition will provide Boston Scientific with a foothold in the high-growth ambulatory electrocardiography space, which strongly complements our recent entrance into the implantable cardiac monitor market and will serve as an important component of our category leadership strategy in cardiac diagnostics and services – a nearly $2B market anticipated to grow double digits annually.”
Subject to customary closing conditions, the transaction is expected to be wrapped up mid-2021.