Fresenius Medical Care announced a definitive agreement to acquire all outstanding shares of NxStage Medical. The acquisition is strategically central to FMC's 2020 strategic initiative, positioning the combined entity as a global leader in home dialysis by integrating NxStage's System One platform into FMC's vertically integrated dialysis ecosystem. The transaction is expected to generate net cost synergies of approximately $80–100 million per annum before tax over three to five years, with integration costs of approximately $150 million over the first three years. FMC expects the acquisition to be accretive to net income and EPS within three years of closing.

NXSTAGE MEDICAL, which reported an EBITDA margin of LOGIN in 2016, is valued in this transaction at an EV/EBITDA multiple of LOGIN, a level to compare with the average currently observed in the Healthcare & Pharma sector (13.3x).

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