Boston Scientific has entered into a definitive agreement with an affiliate of Baring Private Equity Asia (BPEA) to acquire the global surgical business of Lumenis, which develops and commercialises energy-based medical solutions.
The deal is for an upfront cash payment of $1.07 billion, subject to closing adjustments. BPEA will retain ownership of the Lumenis global aesthetics and ophthalmology businesses. With 2021 net sales anticipated to be approximately $200 million, the Lumenis surgical business includes laser systems, fibres and accessories used for urology and otolaryngology procedures.
Foundational to its urology portfolio is the Moses technology, which has demonstrated differentiated clinical outcomes and efficiency in the management of patients with kidney stones.
Worldwide, more than one in 10 adults develop kidney stones each year with up to 50% of patients having a repeat stone within five years of the first occurrence. While some kidney stones may pass through the urinary tract naturally, complex or larger stones require intervention to remove them from the urinary tract. This can be done through surgery or less invasive procedures such as lithotripsy, which uses a small telescope-like device, a ureteroscope, to locate the stone and a laser to break it apart. Laser lithotripsy is a leading modality for minimally-invasive surgery of kidney and urinary stones, whether through flexible ureteroscopy or percutaneous nephrolithotomy.
Meghan Scanlon, senior vice president and president, Urology and Pelvic Health, Boston Scientific, said: "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. 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 centre of excellence to our organisation. 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 U.S. and Japan through a distribution arrangement. Upon completion of the acquisition, Boston Scientific will sell these lasers and fibres – as well as the otolaryngology laser portfolio – to all geographies including high-growth regions like China.
Tzipi Ozer-Armon, chief executive officer, Lumenis, 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 revolutionised 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 organisation to carry this legacy forward."
The company expects to complete the transaction in the second half 2021, subject to customary closing conditions.
