Boston Scientific to Sell Neurovascular Business to Stryker

October 28, 2010—Boston Scientific Corporation (Natick, MA) announced the execution of a definitive agreement under which Stryker Corporation (Kalamazoo, MI) will acquire Boston Scientific's neurovascular business. Boston Scientific established its neurovascular business, based in Fremont, California, with the acquisition of Target Therapeutics in 1997. The neurovascular business is a developer of less-invasive medical technologies that are used to treat brain aneurysms and other types of cerebrovascular disease. Stryker provides orthopedic implants as well as other medical and surgical equipment.

The purchase price of $1.5 billion will be paid in cash, with $1.4 billion to be paid at closing. $100 million will be paid upon the occurrence of commercialization of the next-generation Target detachable coils and the transfer or separation of certain manufacturing facilities, which is anticipated to occur over a period of approximately 24 months. The transaction is expected to close before the end of the year and is subject to receipt of regulatory clearances and satisfaction of other customary conditions.

Boston Scientific stated that it will provide transitional services to Stryker through a transition services agreement and will also supply products to Stryker under agreements that are expected to be effective for approximately 24 months after the closing of the transaction, subject to extension.