Boston Scientific (NYSE: BSX) today announced that it has entered into a definitive agreement with an affiliate of Baring Private Equity Asia (BPEA) to acquire the global surgical business of Israeli medical laser company Lumenis for $1.07 billion cash, subject to closing adjustments. Boston Scientific expects to complete the deal in the second half of 2021.
Boston Scientific is paying the same amount for Lumenis' surgical business as BPEA paid XIO for the entire company in 2019. For its part XIO acquired Lumenis in 2015 for $510 million.
Boston Scientific plans leaving Lumenis' surgical activities in Israel and expanding the Yokneam offices into a world center for laser surgery. Lumenis has 1,500 employees including 450 in Israel.
BPEA will retain ownership of the Lumenis global aesthetics and ophthalmology businesses. With expected 2021 net sales of $200 million, the surgical business of Lumenis includes laser systems, fibers and accessories used for urology and otolaryngology procedures. The company's urology portfolio includes the proprietary MOSES technology, which has demonstrated differentiated clinical outcomes and efficiency in the management of patients with kidney stones.
Lumenis CEO Tzipi Ozer-Armon said, "We take great pride in our heritage of innovation in surgical laser solutions which are helping millions of patients worldwide. Notably the proprietary, patent-protected MOSES technology has revolutionized urology laser procedures by improving the clinical efficacy and efficiency for kidney stones. We are confident that Boston Scientific, as a global leader in urology, and our long-time commercial partner, is the best organization to carry this legacy forward."
"The MOSES laser technology, paired with our LithoVue™ Single-Use Digital Flexible Ureteroscope and comprehensive kidney stone management portfolio, will enable execution of our strategy for our stone franchise," said Meghan Scanlon, senior vice president and president, Urology and Pelvic Health, Boston Scientific. "With double-digit compound annual growth from 2015 to 2019, we look forward to adding the innovative Lumenis laser portfolio, talented employees and surgical laser center of excellence to our organization. The acquisition will expand our global footprint throughout Europe and Asia and accelerate the delivery of our robust stone management offerings to more urologists - ultimately serving more patients worldwide - while also improving our top-line growth and margins."
Boston Scientific has had a relationship with Lumenis for more than 20 years and currently sells the Lumenis urology laser portfolio in the US and Japan through a distribution arrangement.
Published by Globes, Israel business news - en.globes.co.il - on March 3, 2021
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