Agreement Announced by Boston Scientific to Buy Majority of M.I.Tech from Synergy Innovation
The Boston Scientific Corporation announced recently that it has entered into an agreement with the Synergy Innovation Co. to purchase the latter’s majority stake (which is estimated to be around 64% of the publicly traded Korean company M.I.Tech. M.I.Tech is a medical device company which manufactures and distributes equipment for urologic and endoscopic procedures.
The aforementioned agreement comprises a purchase price of KRW 14,500 per share. As a total, this represents KRW 291.2Bn, which, in dollars, set at current exchange rates, would be roughly $230m, which would be subject to closing adjustments. M.I.Tech is responsible for the creation of HANAROSTENT tech, which is a collection of conformable metal stents, which are self-expanding and non-vascular, and they have been in distribution through Boston Scientific in Japan for the last 7 years.
These stents, which are designed for non-vascular gastrointestinal and airway use, aid in the clearing of occlusions and strictures around various area’s of the patient’s body. The pancreatic duct and biliary tree are two such examples, as well as the colon, duodenum and oesophagus. In the majority of cases, stent placement can be minimally invasive, possibly aiding in a faster recover for the patient than surgery.
The technology of the HANAROSTENT features a design with a unique hook-cross nitinol structure, with the intent of providing a flexible and natural fit within the anatomy of the patient. It also features flared ends to aid in preventing stent migration. “M.I.Tech is an innovator in non-vascular stent development, with product offerings that complement our existing stent portfolio, including the differentiated AXIOS™ Stent and Electrocautery Enhanced Delivery System and the flexible and conformable Agile™ Esophageal Stent System,” said Art Butcher, executive vice president and group president, MedSurg and Asia Pacific, Boston Scientific. “We are committed to investing in technologies that advance care for patients around the world and are eager to work more closely with M.I.Tech to expand their international footprint.” The transaction is expected to be completed during the 2nd half of 2022, but is subject to the customary closing conditions.
The impact to GAAP (Generally Accepted Accounting Principles), as well as adjusted earnings per share, is anticipated to be irrelevant in 2022.