Boston Scientific Corp. is purchasing Axonics in a move the buyer says will allow it to pursue a ripe segment of the urology market—one that’s expected to grow from $800 million in 2022 to $1.6 billion over the next five years.

The segment is sacral neuromodulation (SNM) therapy, an Axonics specialty. The technology restores brain-bladder communications by delivering mild electrical pulses to the sacral nerve. Used for minimally invasive therapy, SNM has been shown effective for not only overactive bladder but also fecal incontinence.

Boston Sci points out the Axonics technology showed meaningful improvement in patients’ quality of life for up to two years in clinical trials. The researchers also reported no serious device-related adverse events.

Boston Sci says the purchase is valued at $71 in cash per share, reflecting an equity value of approximately $3.7 billion and an enterprise value of approximately $3.4 billion.

The company notes that almost 30 million U.S. adults have disruptive symptoms of overactive bladder. Another 19 million suffer from chronic fecal incontinence.

Meghan Scanlon, Boston Scientific’s head of urology, calls sacral neuromodulation a “high-growth adjacency with opportunities to expand access to care for [these] patients.”

The FDA cleared Axonics to sell its fourth-generation neurostimulator, the R20, in January 2023. The device runs on a rechargeable battery designed to run for 20 years or more.

As another feature of the acquisition, Boston Scientific will add to its urology portfolio an Axonics urethral bulking system, the Bulkamid, which can be administered to treat female stress urinary incontinence.

The boards of both companies have approved the transaction, paving the way for Axonics to soon become a wholly owned subsidiary of Boston Scientific.

Boston Scientific is headquartered in Marlborough, Mass. Axonics is based in Irvine, Calif.

Announcement here, investor briefing slides here.