Medical devicemaker Stryker, Kalamazoo, Mich., will pay $1.5 billion to acquire the neurovascular division of Boston Scientific, Natick, Mass. The division manufactures minimally invasive devices and products used in the treatment of stroke.
Stryker to buy Boston Scientific's neurovascular division
The agreement, according to a news release, calls for Stryker to pay $1.4 billion in cash upon closing of the deal. An additional $100 million will be paid to Boston Scientific upon the completion of specific milestones, including the commercialization of certain products and the transfer of ownership of the neurovascular device manufacturing facilities.
Boston Scientific President and CEO Ray Elliott said in a news release that the neurovascular division sale is part of an ongoing effort to refocus the company's portfolio. The division employs roughly 1,150 people and reported $348 million in revenue in 2009.
No details have been provided about Stryker's integration plan for the division, but the deal is expected to close by year-end. The transaction is subject to customary regulatory review and approval.
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