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Boston Scientific Corp. said Tuesday it has agreed to acquire Apollo Endosurgery Inc. for $10 a share, or about $615 million in cash. The news sent Apollo's stock, which closed Monday at $6, up 61% in premarket trade. The company has a portfolio of devices used in endoluminal surgery procedures to close gastrointestinal defects, manage gastrointestinal complications and aid in weight loss for patients suffering from obesity, and is expected to generate net sales of about $76 million in 2022. "Endoluminal surgery is an emerging field and a core focus for our Endoscopy business," said Mike Jones, senior vice president and president, Endoscopy, Boston Scientific. The deal is expected to close in the first half of 2023. The deal is expected to be immaterial to Boston Scientific's per-share earnings in 2023, but to boost them after that. Boston Scientific shares were not yet active premarket, but have gained 3% in the year to date, while the S&P 500 has fallen 17%.

-Ciara Linnane

(END) Dow Jones Newswires

November 29, 2022 07:13 ET (12:13 GMT)

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