Shares of Axonics(NASDAQ: AXNX) were up 20.5% on Monday after the urology company agreed to be acquired by Boston Scientific(NYSE: BSX). Boston Scientific shares were also up around half a percent on the news today.
A win-win deal for Axonics and Boston Scientific
More specifically, Axonics agreed to be acquired by Boston Scientific for $71 per share in cash, good for an equity value of $3.7 billion and (excluding Axonics' net cash and short-term investments) an enterprise value of $3.4 billion. Axonics shares have traded in a relatively tight range for the past few years leading up to the announcement and were up only slightly over the last year as of Friday's close.
Axonics CEO Raymond Cohen noted his company has built best-in-class solutions for people with incontinence since it was founded a decade ago. He elaborated that his team "is looking forward to the global impact we can make as part of Boston Scientific as we endeavor to bring these life-changing therapies to more patients than ever before."
"We are excited to add Axonics technologies to the Boston Scientific portfolio, a combination that we expect will further strengthen our ability to serve urologists who are treating patients living with these often-chronic conditions," added Boston Scientific Senior VP and President, Meghan Scanlon.
The deal also propels Boston Scientific into the market for sacral neuromodulation, which Scanlon called a "high-growth adjacency" with significant room to expand access to care for patients.
What's next for Axonics shareholders?
The acquisition has already been approved by both companies' boards of directors. Assuming it also receives approval from regulators and Axonics shareholders, the purchase should close in the first half of 2024.
With Axonics stock now trading at only a modest 2% discount to the agreed cash acquisition price -- and unless waiting longer to sell wouldn't qualify you for lower long-term capital gains tax rates -- I wouldn't blame investors for taking their profits off the table and putting them to work in any number of other promising healthcare stocks.
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Steve Symington has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
