Boston Scientific to acquire Bolt Medical for upfront payment of $443M

Boston Scientific (BSX) announced it has entered into a definitive agreement to acquire Bolt Medical, the developer of an intravascular lithotripsy advanced laser-based platform for the treatment of coronary and peripheral artery disease. Boston Scientific initially developed the concept for the Bolt IVL system which helped establish Bolt Medical in 2019. As a strategic investor in Bolt Medical, Boston Scientific has an equity stake of approximately 26%. As a result, the transaction consists of an upfront payment of approximately $443M for the 74% stake not yet owned and up to $221M upon achievement of certain regulatory milestones. Boston Scientific anticipates the transaction to be completed in the first half of 2025, subject to customary closing conditions. On an adjusted basis, the company expects the transaction to be slightly dilutive to adjusted earnings per share in 2025, and to offset via internal cost efficiencies and trade-offs. On a GAAP basis, the transaction is expected to be more dilutive due to amortization expense and acquisition-related charges, except for a one-time gain to be recognized at closing associated with the company’s previously held equity interest in Bolt Medical.