BSX - Boston Scientific Acquires Silk Road Medical: Unveiling Investor Implications

2024-06-20 09:21:07 ET

Summary

• Boston Scientific Corp announced the acquisition of Silk Road Medical for $1.16 billion, valuing Silk Road Medical, Inc’s shares at $27.5, 27% higher than the previous share price.
• Boston Scientific is also in the process of acquiring Axonics, with the BSX-AXNX merger expected to be completed by H2 2024.
• Silk Road Medical's TCAR platform has regulatory approvals in the U.S., Japan, and China, showing potential for revenue growth in underpenetrated markets like Asia-Pacific.

Thesis

Boston Scientific Corporation ( BSX ) announced yesterday the acquisition of Silk Road Medical, Inc (SILK). The transaction will cost $1.16 billion, valuing SILK’s shares at $27.5, approximately 27% higher than SILK’s common share price before the announcement. BSX-SILK merger is expected to be completed by the end of 2024.

Boston is already in the process of acquiring Axonics (AXNX), which I have covered in a previous analysis . The BSX-AXNX merger is expected to be completed by H2 2024. To fund part of this acquisition, BSC has completed a €2 billion senior notes offering ....

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