The acquisition of Preventice will provide Boston Scientific with a foothold in the high-growth ambulatory electrocardiography space
Boston Scientific to acquire Preventice Solutions. (Credit: Adam Radosavljevic from Pixabay.)
US-based medical device maker Boston Scientific has agreed to acquire Preventice Solutions, a provider of mobile cardiac health solutions and services.
Under the terms of the transaction, Boston Scientific will make an upfront payment of $925m in cash, in addition to payments of up to $300m, based on reaching the potential commercial milestones.
Boston Scientific has been investing in Preventice since 2015, and currently holds an equity stake of around 22% in the company.
With the investment, the company is expected to pay a net payment of around $720m upon closing, and up to $230m in milestone payments.
Boston Scientific senior vice president and rhythm management president Scott Olson 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.
“We are confident that by adding the broad technology portfolio and expertise of Preventice, our combined teams can continue to deliver rapid growth in these highly-attractive markets while also establishing an important adjacency to our core cardiac rhythm management and electrophysiology businesses.”
Preventice offers BodyGuardian family of remote, wearable cardiac monitors for adult and paediatric patients, which leverage a fully-integrated, cloud-based platform supported by an independent diagnostic testing facility.
The latest remote monitoring system within the BodyGuardian family, the BodyGuardian MINI PLUS features multiple electrode options intended for enhanced rhythm detection.
Also, the system is waterproof, repositionable and can be used in all modalities of short and long-term monitoring, as determined necessary by physicians, said the company.
Preventice’s remote monitoring systems are combined with BeatLogic deep learning AI algorithms, to detect, classify and interpret variations in heart rhythm data with enhanced beat detection sensitivity and positive predictive value.
The acquisition is anticipated to complete in mid-2021, subject to customary closing conditions.
Preventice Solutions chief executive officer Jon Otterstatter 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.”