It looks as though 2011 is shaping up to be the year of growth by acquisition as predicted by many analysts. A good example is the recent announcement by Boston Scientific Corp  to acquire Atritech, Inc, a privately held company based in Plymouth, MN.  Atritech has developed a novel device designed to close the left atrial appendage in patients with atrial fibrillation who are at risk for ischemic stroke.  The agreement calls for an upfront payment of $100 million plus additional potential payments of up to $275 million upon achievement of specified regulatory and revenue-based milestones through 2015.  The purchase price assumes no cash and no debt on Atritech’s balance sheet at closing.  The upfront payment is expected to be funded with cash on hand.

For more on the deal and what it means, see Perspectives.