Tuesday, Boston Scientific Corporation ( BSX ) agreed to acquire Silk Road Medical Inc ( SILK ) for $27.50 in cash per share, representing an equity value of approximately $1.26 billion.

The per-share price represents an approximate 38% premium to the volume-weighted average share price of Silk Road Medical’s common stock over the past 60 days.

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Silk Road Medical ( SILK ) is a minimally invasive medical device company for carotid artery procedures.

The acquisition adds technology for stroke prevention to Boston Scientific’s vascular portfolio.

The TCAR system gained FDA approval in 2015 and is supported by several clinical studies demonstrating a reduced risk of stroke and other complications associated with traditional open surgery.

The products sold by Silk Road Medical ( SILK ) are the only devices commercially available for use during the TCAR procedure.

“The TCAR platform developed by Silk Road Medical ( SILK ) is a notable advancement in the field of vascular medicine, which has revolutionized stroke prevention and the treatment of carotid artery disease,” said Cat Jennings, president of Vascular, Peripheral Interventions, Boston Scientific ( BSX ). 

The Silk Road board of directors has unanimously approved the transaction and recommended that Silk Road stockholders adopt the merger agreement.

The transaction is expected to close in the second half of 2024.

Upon the completion of the transaction, Silk Road will become a wholly-owned subsidiary of Boston Scientific ( BSX ).

Read Next: Boston Scientific Lifts 2024 Profit Forecast On Strong Growth From Cardiovascular Devices, Stock Soars.

Silk Road Medical ( SILK ) has guided to net revenue of approximately $194-198 million in 2024, representing 10-12% growth over the prior fiscal year.

The impact to Boston Scientific ( BSX ) adjusted earnings per share is expected to be immaterial in 2024 and 2025 and accretive thereafter.

Boston Scientific ( BSX ) expects the impact to GAAP earnings per share to be less accretive or dilutive, as the case may be, due to amortization expense and acquisition-related net charges.

Price Action: SILK shares are up 23.8% at $26.83, and BSX stock is down 0.64% at $75.70 at last check Tuesday.