Boston Scientific to Acquire Silk Road Medical in $1.16 Billion Deal

Boston Scientific to Acquire Silk Road Medical in $1.16 Billion Deal

Boston Scientific has announced an agreement to acquire medical device maker Silk Road Medical for $1.16 billion. The deal will see Boston Scientific pay $27.50 per share, a 27% premium over Silk Road's last closing price. Silk Road Medical specializes in technology to prevent strokes in patients with carotid artery disease through a minimally invasive procedure known as transcarotid artery revascularization (TCAR). The acquisition is anticipated to be finalized in the second half of 2024.

Silk Road Medical's board of directors has unanimously approved the transaction and recommended shareholder adoption. The company's shares rose nearly 23% to $26.64 in premarket trading following the announcement. Boston Scientific expects the acquisition to have an immaterial impact on its adjusted earnings per share in 2024 and 2025, though it could become less accretive thereafter due to amortization expenses and acquisition-related net charges. Once the deal is completed, Silk Road Medical will become a wholly-owned subsidiary of Boston Scientific.

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