Medical device manufacturer Boston Scientific yesterday agreed to acquire its portfolio company Preventice Solutions, a US-based mobile healthcare technology developer backed by fellow corporates Novo, Merck & Co and Samsung.
The transaction is set to close by mid-2021 and will include a $925m upfront cash payment and an additional commercial milestone payment of up to $300m. Boston Scientific currently owns a roughly 22% stake in the company.
Founded in 2014, Preventice provides digital products for patients to communicate remotely with healthcare professionals. Its lead products include a remote monitoring and management platform, PatientCare, and BodyGuardian, a cloud-based electronic health record tool.
Boston Scientific first backed Preventice in a 2015 round of undisclosed size before returning five years later for a $137m round, investing alongside pharmaceutical firms Novo and Merck, and electronics producer Samsung.
Merck Global Health Innovation (GHI) Fund and Samsung Catalyst Fund (SCF) invested on behalf of Merck and Samsung in the July 2020 round, which was led by investment firm Vivo Capital.
GHI and SCF were identified as returning backers, with Merck having been Preventice’s majority shareholder when the company merged with peer ECardio Diagnostics in 2014.
Scott Olson, senior vice-president and president of rhythm management for Boston Scientific, said: “We are confident that by adding the broad technology portfolio and expertise of Preventice, our combined teams can continue to deliver rapid growth in these highly-attractive markets while also establishing an important adjacency to our core cardiac rhythm management and electrophysiology businesses.”
