A portion of Minnetonka-based American Medical Systems will be purchased by Boston Scientific for about $1.6 billion.
The companies announced the agreement Monday morning, detailing the deal. American Medical Systems is owned by Dublin-based Endo.
Boston Scientific will pay $1.6 billion in up-front cash for American Medical System's urology portfolio – which includes the Men's Health and Prostate Health business, focusing on urologic conditions such as benign prostatic hyperplasia, male stress urinary incontinence and erectile dysfunction.
Endo President and CEO Rajiv De Silva said in a statement it allows AMS to better position itself as a specialty pharmaceutical company.
The price could go up another $50 million based on sales numbers this year.
The AMS Men's Health and Prostate Health businesses comprise about 800 employees worldwide, and in 2014 generated $400 million in sales.
It will be rolled in with Boston Scientific's Urology and Women's Health business, known for treatment of kidney stones, pelvic organ prolapse, female stress urinary incontinence and abnormal uterine bleeding treatment.
Together, both groups reach nearly $1 billion in annual sales.
The Minneapolis-St. Paul Business Journal notes Boston Scientific has about 5,000 employees in Minnesota.
President and CEO of Boston Scientific Mike Mahoney said the "strategic acquisition will strengthen Boston Scientific's global leadership in the urology device category," while also being a boon for investors.
The deal is expected to close in the third quarter of 2015.