By Colin Kellaher
Boston Scientific Corp. on Tuesday said it agreed to buy smaller medical-technology company Apollo Endosurgery Inc. for an enterprise value of about $615 million in a deal that bolsters its endoluminal surgery portfolio.
Boston Scientific, based in Marlborough, Mass., said it would pay $10 a share in cash for Apollo, a roughly 67% premium to Monday's closing price of $6 for the Austin, Texas, company.
Boston Scientific said endoluminal surgery is an emerging field and a core focus for its endoscopy business, adding that the Apollo deal offers a new adjacency in the endobariatric market.
Apollo's portfolio includes devices used during endoluminal-surgery procedures to close gastrointestinal defects, manage gastrointestinal complications and aid in weight loss for patients suffering from obesity.
The deal's $615 million enterprise value is based on a total fully diluted share count of about 64.8 million Apollo shares, minus the company's roughly $33 million of net cash.
Boston Scientific said it expects to complete the acquisition in the first half of 2023.
Apollo shares surged nearly 63% to $9.76 in premarket trading Tuesday.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
11-29-22 0733ET