Context

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.

Target

NxStage Medical is a US-based medical technology company founded in 1998, specialising in the development, manufacture, and marketing of innovative medical devices for home dialysis and critical care settings. The company's flagship product is the System One, a portable home haemodialysis (HHD) machine that represents the most advanced home dialysis platform available in the US market and is sold primarily to Fresenius Medical Care North America and its main competitor DaVita. NxStage also develops products for acute kidney failure treatment in critical care environments and has established a small number of dialysis clinics dedicated to developing innovative care delivery models for end-stage renal disease (ESRD) patients.