Dialysis products and services provider Fresenius Medical Care has completed the $2bn acquisition of NxStage Medical, after receiving approval from antitrust authorities in the US.
Via its network of 3,928 dialysis clinics, Fresenius Medical Care offers dialysis treatments for 333,331 patients across the globe.
NxStage develops, manufactures and markets a product portfolio of medical devices for use in home dialysis and critical care.
Fresenius Medical Care CEO Rice Powell said: “The closing of this transaction is an important milestone in enhancing our patients’ choice of dialysis treatment modality. By combining NxStage’s capabilities with our broad product and service offering, we can help patients to live even more independently.
“In addition to broadening our product portfolio, this acquisition positions Fresenius Medical Care to benefit from the growing trend toward home-based therapies.”
Founded in 1998, NxStage Medical employs about 3,800 people globally. The company generated $394m in revenue in 2017.
The company’s portfolio includes the portable haemodialysis system called NxStage System One, which has been cleared by the US Food and Drug Administration (FDA) for home use.
Fresenius Medical estimates lower total integration costs of around €50m to €75m over the three years following the closing of the transaction.
The company assumes the full year effect of incremental intangible assets amortization to be in the range of €70m to €80m for the initial two years, then drop to €45m to €55m thereafter. Fresenius noted that it will update those numbers after a detailed assessment, if needed.
Fresenius expects operating income to enhance from 2020 onwards due to realization of the anticipated synergies from the acquisition.
Fresenius Medical Care is claimed to be the world’s largest provider of products and services for individuals with renal diseases of which about 3.4 million patients worldwide regularly undergo dialysis treatment.
The company also provides dialysis products like dialysis machines or dialyzers. Along with the core business, the company focuses on extending the range of related medical services in the field of Care Coordination.