USA – Boston Scientific has officially completed its US $3.7 billion acquisition of Axonics, Inc., bolstering its urology offerings with cutting-edge sacral neuromodulation (SNM) technology.
This acquisition includes Axonics’ R20 rechargeable SNM and F15 recharge-free SNM systems, which deliver mild electrical pulses to the sacral nerve to treat urinary and bowel dysfunction, along with Bulkamid, a urethral bulking agent for stress urinary incontinence.
The deal, priced at US $71 per share in cash, represents an equity value of US $3.7 billion and an enterprise value of US $3.3 billion.
While initially announced in January 2024, the acquisition faced delays due to a Federal Trade Commission (FTC) review.
Enhancing urology capabilities
By integrating Axonics’ product portfolio, Boston Scientific gains a stronger foothold in the growing sacral neuromodulation market, where Axonics holds a 27% market share, second only to Medtronic.
The acquisition enables Boston Scientific to expand into this high-growth segment, enhancing its comprehensive urology and pelvic health solutions.
“Over the last decade, it has been impressive to see the meaningful innovations Axonics has delivered for patients with overactive bladder and incontinence,” said Meghan Scanlon, Senior Vice President and President of Urology at Boston Scientific.
“The addition of Axonics’ product portfolio allows us to bring tailored treatment options to patients globally, addressing incontinence severity at every life stage.”
Strategic growth through M&A
Boston Scientific has built a reputation as one of the most active medtech players in mergers and acquisitions.
Over the past decade, the company has completed more than 40 acquisitions, including Relievant Medsystems, Apollo Endosurgery, and Baylis Medical.
At its September 2023 Investor Day, Boston Scientific emphasized its focus on M&A to drive growth and accelerate entry into underpenetrated markets.
BTIG analysts Marie Thibault and Sam Eiber echoed this sentiment, calling the Axonics acquisition a “strategic fit” for Boston Scientific’s urology business.
“We believe this portfolio will serve as a nice adjacency for [Boston Scientific’s] urology business, given its high-growth profile in an underpenetrated market,” noted the analysts.
Leadership transition at Axonics
As part of the acquisition, Axonics’ leadership structure has been overhauled. All board members, including CEO Raymond Cohen, stepped down, with Boston Scientific executives taking on leadership roles.
CEO Michael Mahoney, CFO Daniel Brennan, and Vance Brown are among those now overseeing the integrated operations.
Cohen’s departure was accompanied by a separation agreement, entitling him to severance benefits as disclosed in Axonics’ 2024 annual report.
Financial and market implications
Axonics reported US $366 million in revenue in 2023, a 34% increase from the previous year, signaling strong growth potential.
While Boston Scientific projects an immaterial impact on adjusted earnings per share in 2024 and 2025, accretion is expected in later years.
The acquisition strengthens Boston Scientific’s urology business and reinforces its patient-centric approach to treating chronic conditions.
