Boston Scientific (NYSE:BSX) has made a strong move deeper into the business of electrophysiology -- the study of electrical phemomena, and how they are related to the functions of the body. The company announced that it inked an agreement to purchase Bard EP, the electrophysiology division of C.R. Bard (NYSE:BCR). The price is $275 million in cash.
Boston Scientific made the acquisition in order to support its "strategy to provide a robust portfolio of solutions for cardiac catheter ablations and other EP tools to diagnose and treat a variety of conditions in which the heart beats abnormally." According to the company's figures, the worldwide electrophysiology market is about $2.5 billion in size, and is growing at an annual rate of almost 10%.
Bard EP is to be folded into its new owner's existing electrophysiology business, which is under the wing of its rhythm management division. Boston Scientific believes the net impact of the transaction on EPS will be "immaterial" for 2013, and roughly $0.01 accretive in 2014 on a non-GAAP basis. It should be dilutive on a GAAP basis in both years.
The transaction is expected to close in the second half of this year.
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