Baring Private Equity Asia (BPEA) and Israel-based Lumenis said Wednesday they have entered into a definitive agreement to sell the surgical business arm of Lumenis to US medical devices maker Boston Scientific for $1.07 billion.
The surgical business division of the Yokne’am, Israel-based firm includes its laser and fiber products for minimally invasive surgical procedures in urology and ear, nose and throat (ENT) procedures.
The aesthetics and ophthalmology division of Lumenis will continue to be owned by BPEA, the companies said in a statement. BPEA plans to reinvest part of the proceeds of the deal into the Israeli division it will continue to hold, to accelerate growth, the companies said in a statement.
BPEA acquired Lumenis, a maker of minimally invasive clinical devices for aesthetics, urology and ophthalmology, from XIO Group in November 2019, in a deal that valued all the units of the Israeli firm at $1 billion.
Lumenis, founded in 1973, has developed and commercialized innovative energy-based technologies, including laser, intense pulsed light (IPL) and radio-frequency (RF). Some 30 years ago the firm developed the world’s first holmium surgical laser to blast urinary stones located in the kidneys, bladder or in between. It recently came up with a new technology, called Moses, that the Israeli company says is even more effective than its original urology lasers, and is considered a game-changer.
“This acquisition is a tremendous vote of confidence in Lumenis and our global teams,” said Tzipi Ozer-Armon, CEO of Lumenis. “In recent years, we have developed and introduced multiple groundbreaking technological solutions that have redefined our industry and opened entirely new market segments. The strong, global backbone of Boston Scientific will reinforce the Surgical team’s ability to continue delivering market-defining innovation, while enabling these solutions to reach many more millions of patients worldwide.”
The deal will enable Lumenis to focus on its aesthetics and vision business, with increased investment in new products, she said.
The Lumenis Surgical division will become an integral part of Boston Scientific’s urology arm. Boston Scientific intends to keep the company’s operations in the country and make it a global center of excellence in the field of laser technologies.
Commenting on the deal, Yan Jiao, managing director at BPEA, said that the “strategic sale will enable Lumenis to focus its R&D, commercial and sales efforts exclusively on the Aesthetics and Vision businesses, positioning it well to pursue new growth opportunities in the coming years. Its prominent position at the intersection of Asian medical devices and Aesthetics, where it has global leadership, is closely aligned with BPEA’s wider healthcare investment strategy.”
Meghan Scanlon, senior vice president and president, Urology and Pelvic Health, Boston Scientific, added the Moses laser technology complements the kidney stone products portfolio of the US company.
In 2015, Lumenis was acquired for some $510 million by XIO Group, which delisted the firm’s shares from the Nasdaq exchange.
Lumenis employs 450 workers in Israel and some 1,500 globally.