NEW YORK (TheStreet) -- Shares of EndoChoice (GI) were surging 88.86% to $7.97 in pre-market trading on Monday as Boston Scientific (BSX) agreed to purchase the Alpharetta, GA-based medical device company for approximately $210 million, or $8 per share.
The transaction will strengthen the Marlborough, MA-based company's endoscopy business as it utilizes EndoChoice's range of single-use devices used to treat gastrointestinal conditions, Boston Scientific said in a statement.
The deal represents a 90% premium to EndoChoice's closing price of $4.22 per share on Monday, the Wall Street Journal noted.
Boston Scientific said the acquisition will be breakeven to its 2017 earnings and accretive thereafter. The deal is expected to be complete in Boston Scientific's fiscal 2016 fourth quarter.
Boston Scientific develops, manufactures and markets medical devices that are used in interventional cardiology, endoscopy and urology, among other areas.
Shares of Boston Scientific closed higher on Monday.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
TheStreet Ratings team rates EndoChoice as a Sell with a ratings score of D-. This is driven by several weaknesses, which it believes should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks it covers. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income.
You can view the full analysis from the report here: GI