Why Axonics stock soared today

stock axon (AXNX 20.48%) It rose 20.5% on Monday after the urology company agreed to be acquired. boston scientific (BSX 0.45%). Boston Scientific shares also rose about 0.5% on today’s news.

Win-win agreement between Axonics and Boston Scientific

More specifically, Axonics agreed to be acquired by Boston Scientific for $71 per share in cash. This equates to a stock value of $3.7 billion (excluding Axonics’ net cash and short-term investments) and an enterprise value of $3.4 billion. Axonics’ stock had been trading in a relatively narrow range for the past several years prior to this announcement and was up slightly over the past year as of Friday’s close.

Axonics CEO Raymond Cohen said his company has been building best-in-class solutions for people with urinary incontinence since it was founded 10 years ago. He explained that his team is “looking forward to the global impact we can make as part of Boston Scientific as we work to bring these life-changing treatments to more patients than ever before.”

“We are excited to add Axonics technology to the Boston Scientific portfolio,” said Boston Scientific’s Executive Vice President and President. “This combination of technologies will enhance our ability to serve urologists treating patients with these chronic conditions. “We expect it to be further strengthened,” he added. Megan Scanlon.

The transaction moves Boston Scientific into the sacral neuromodulation market, which Scanlon calls a “high-growth adjacency” with significant room to expand access to patient care.

What’s next for Axonics shareholders?

The acquisition has already been approved by the boards of directors of both companies. The purchase could be completed in the first half of 2024, if also approved by regulators and Axonics shareholders.

Axonics stock is currently trading at a mere 2% discount to the agreed-upon cash acquisition price, and I don’t blame investors, unless they wait to sell any longer and qualify for lower long-term capital gains tax rates. Take their profits off the table and invest them in other promising healthcare stocks.