NxStage, a US based medical technology and services company, is set to be acquired by Germany based Fresenius Medical care to strengthen its vertically integrated dialysis business. The deal which is approved by the board of directors is yet to be approved by the NxStage stockholders, regulatory approvals and other customary closing conditions. The expected date of closing is set in 2018.
Fresenius Medical Care would strength its positioned in the home dialysis and would establish U.S presence in the critical care space if this deal goes through. The deal would also further enhance patient empowerment, clinical outcomes and would support strategic initiative of vertical integration and care coordination for Fresenius Medical Care.
Founded in 1988, NxStage develops, produces and markets innovative product portfolio of medical devices specializing in home dialysis. NxStage has 3,400 employees and has positioned itself as an innovative customer care company with a revenue of USD 366 million in 2016. Fresenius Medical Care is set to acquire all outstanding shares of NxStage for USD 30 per common share valuing the transaction at USD 2 billion.
Fresenius Medical care expects the acquisition to be accretive to net income and EPS within three years from closing and the transaction would be cash and debt financed. Initial net cost synergies potential of approximately USD 80 to 100 million p.a. before tax over three to five years is expected and the integration cost is assumed to be USD 159 million in the first three years from announcement.
About Fresenius Medical Care
With more than 310,000 kidney patients in their global network, Fresenius Medical Care is the world’s leading provider of products and services for people with chronic liver failure. Working all around the globe, Fresenius works in over 120 countries and has 3600 dialysis clinics. Fresenius Medical Care corporate headquarter is in Germany, its North American headquarters in is Massachusetts and Asia- Pacific headquarter is in Hong Kong. With USD 17,911 million in revenue, Fresenius Medical Care has 37 production sites around the world and employs 112,163 employees.