DOW JONES NEWSWIRES
Boston Scientific Corp. (BSX) acquired a development-stage company focused on technology that is sometimes described as pacemakers for the brain, in a deal valuing the company at $78 million.
The medical-device maker bought Intelect Medical Inc. with a total cash payment of $60 million paid from cash on hand. The payment is in addition to Boston Scientific's existing equity and debt positions in Intelect, which it didn't disclose.
Intelect Medical's website said it has raised $11.3 million in equity financing from Boston Scientific and Greatbatch Inc. (GB).
Boston Scientific predicted the deal would start boosting earnings in 2014. Late last year, the company outlined its strategies to spark sales growth in the next few years. That included a focus on products in the area of brain-stimulation technology, which is Intelect's focus.
The company is developing a neuromodulation programming system that would be the first to let clinicians visualize stimulation fields in the brain and provide more precise targeting of therapy. Neuromodulation involves implanting devices to alter activity in the nervous system, often with electricity or drugs.
Boston Sci shares were up a penny at $7.49 in recent trading. The stock has fallen 17% in the last year, while the broader market has climbed.
-By Joan E. Solsman, Dow Jones Newswires; 212-416-2291; firstname.lastname@example.org