FRANKFURT: German dialysis services provider Fresenius Medical Care (FMC) said on Monday it has agreed to buy for around $2 billion in cash NxStage , a US maker of devices for use in home dialysis.
FMC said it planned to offer $30 per share to acquire all of NxStage’s outstanding shares. The price represents a 22 per cent premium to NxStage’s 90-day moving average share price.
The German company plans to finance the acquisition, which has been approved by NxStage’s board, with cash and debt, it said. It expects to close the deal next year.
“Home dialysis is a critical component of renal care, and this acquisition would help us accelerate growth and innovation in this important modality,” said Bill Valle, CEO of Fresenius Medical Care North America.
Boston-based NxStage made $366 in revenue in 2016 and narrowed its net loss to $5 million from $15 million a year earlier. It has 3,400 employees.
FMC said it expected the acquisition to be accretive to net income within three years from closing. It sees annual pre-tax cost-savings potential of $80 to $100 million over three to five years, and integration costs of about $150 million in the next three years.
— Reuters
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