Endo to divest its American Medical Systems men's and prostate businesses to Boston Scientific

Ireland-headquartered Endo International (Nasdaq: ENDP) has entered into a definitive agreement with Boston Scientific (NYSE: BSX) under which Boston will acquire the men’s and prostate health businesses belonging to Endo's American Medical Systems for up to $1.65 billion.

Of that sum, $1.6 billion will be paid in cash upon closing. Endo is also eligible to receive a milestone payment of $50 million in cash conditioned on Boston Scientific achieving certain product revenue milestones in the men’s health and prostate health businesses in 2016. The companies expect to close the transaction in the third quarter of 2015, subject to customary conditions.

Rajiv De Silva, president and chief executive of Endo, said: "The divestiture of AMS marks the continued execution of our business strategy and furthers the transformation of Endo into a leading global specialty pharmaceutical company. This transaction provides us with greater financial flexibility and better positions the company to take advantage of value-creating M&A opportunities for our pharmaceuticals businesses. As a result of the divestiture, we expect to realize an increase in our revenue growth rate, an improvement in our operating margin profile and a decrease in our overall effective tax rate. I would like to thank all of our AMS colleagues for their continued dedication and efforts in support of the business and its growth. We are confident that the combined expertise, resources and product portfolio of AMS and Boston Scientific will create a leader in the male urological device space dedicated to improving patients' lives."