Boston Scientific, Silk Road expect to close merger in ‘coming days’

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Dive Brief:

• Boston Scientific and Silk Road Medical expect their $1.26 billion merger to close in the “coming days,” nearly three months after the acquisition was announced.
• Silk Road, which makes stroke prevention devices, said Friday in a federal securities filing that the merger waiting period expired late Thursday, allowing the companies to complete the deal. In August, Boston Scientific resubmitted its merger filing to give the Federal Trade Commission additional time to review the acquisition proposal, which triggered a new waiting period.
• Boston Scientific confirmed in an emailed statement that it expects to close the “acquisition in the coming days, subject to the satisfaction of remaining customary closing conditions.”

Dive Insight:

Boston Scientific and Silk Road announced the merger in June. The deal valued Silk Road at $27.50 per share. Silk Road manufacturers devices used in a minimally invasive procedure called transcarotid artery revascularization, a treatment for plaque buildup in the carotid arteries in the neck.

At the time of the announcement, Boston Scientific said Silk Road’s products would add to its vascular portfolio and the company would bring in a revenue range of from $194 million to $198 million in 2024.

The deal was slightly delayed last month after Boston Scientific withdrew and resubmitted its original merger filing to give the FTC additional review time, according to a filing with the Securities and Exchange Commission. After refiling, a new 30-day waiting period went into effect under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

Boston Scientific has been active on the M&A front, with multiple billion-dollar deals announced in the first half of the year. In early January, Boston Scientific proposed to buy Axonics for $3.7 billion. However, the acquisition still hasn’t closed.

In April, Boston Scientific delayed the expected closure date to the second half of 2024 after the FTC asked for additional information on the deal for the second time. Antitrust experts warned in a Bloomberg report in March that the FTC would likely scrutinize the merger because both companies are dominant in the urinary incontinence market.

A Boston Scientific spokesperson said Friday in an emailed statement to MedTech Dive that the company is “working cooperatively with the FTC” on the Axonics proposal, and wants to “respect the FTC’s process. As such, we are not disclosing the details of the request or the information we’ve provided.

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