Boston Scientific to acquire Rhythmia Medical
9 October 2012
Boston Scientific Corporation (NYSE: BSX) has announced it has
entered into an agreement to acquire privately-held Rhythmia Medical,
Inc., a developer of mapping and navigation solutions for use in cardiac
catheter ablations and other electrophysiology procedures, including
atrial fibrillation and atrial flutter. Rhythmia Medical is based in
Burlington, MA. The transaction is expected to close by Friday, 12
"The acquisition of Rhythmia Medical is a decisive step forward for
Boston Scientific in the electrophysiology ablation business,
including the high-growth segment of complex ablation," said Hank
Kucheman, chief executive officer of Boston Scientific.
"Electrophysiology is a $2.5 billion market and growing at a
double-digit pace, representing a key growth opportunity for us.
Rhythmia Medical has a strong and impressive team, and its
technology is expected to add innovation and breadth to Boston
Scientific's suite of solutions in this strategically important
Atrial fibrillation is a disorder that disrupts the ability of the
heart to beat regularly and pump blood efficiently. Approximately 15
million people worldwide are affected. Catheter ablation enabled by
three-dimensional mapping and navigation is commonly used to treat
many heart rhythm disorders, including atrial flutter and atrial
"Rhythmia Medical's revolutionary mapping technology is expected to
significantly enhance physician treatment options and ultimately
facilitate and improve what today are long and complicated
procedures," said Doron Harlev, co-founder and co-chief executive
officer of Rhythmia Medical.
"Our system is expected to become a very promising tool for
physicians to treat patients with complex cardiac arrhythmias.
We are excited to combine our mapping system with Boston
Scientific's strong catheter platform and commercialization
Once the mapping system is cleared by the U.S. Food and Drug
Administration and receives CE Mark approval in Europe, Boston
Scientific expects to begin a limited market launch of the system in
2013 and full market launch in 2014.
The agreement calls for an upfront payment of $90 million payable
upon transaction closing, and up to an additional $175 million in
contingent payments based on regulatory, commercial, and sales-based
milestones through 2017. Boston Scientific currently expects
the net impact of this transaction on adjusted earnings per share to
be immaterial for years 2013 and 2014 and break-even to accretive
thereafter, and more dilutive on a GAAP basis as a result of
acquisition-related net charges and amortization, which will be
determined during the fourth quarter.