Boston Scientific Corp. plans to buy Target Therapeutics, a leading maker of devices for minimally invasive neurosurgery, in a stock swap valued at $1.1 billion.
Boston Scientific's purchase of Target would be its 10th major acquisition in the past two years. Industry analysts generally praised the proposed combination, despite the continuing challenges of digesting recently purchased companies.
"I think this is a terrific acquisition, and I would have been concerned if somebody else had done it and they hadn't," said Rick Wise, an industry analyst with Bear, Stearns & Co.
Natick, Mass.-based Boston Scientific is a major manufacturer of a broad line of catheters and other devices used primarily in minimally invasive surgery of cardiac and peripheral blood vessels. The company posted 1996 revenues of $1.5 billion.
Target, based in Fremont, Calif., holds a dominant market position in the manufacture of catheters and implants used to treat stroke. It had 1996 revenues of $69.8 million.
The deal is expected to close in the second quarter, subject to shareholder and regulatory approval.