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Boston Scientific Corporation (BSX - Analyst Report) recently closed the acquisition of Bard EP, the electrophysiology business of C.R. Bard, Inc. (BCR - Analyst Report). The deal, valued at $275 million, is a step forward to strengthening the company’s foothold in the $2.5 billion global electrophysiology market.

With the market growing at a rapid pace of 10% a year, Boston Scientific is confident about expanding its electrophysiology business. The company is optimistic about the acquisition of Bard EP, which generated sales of $111 million in the last fiscal. According to BSX, Bard EP will provide an extensive line of solutions for cardiac catheter ablations and other EP tools for the detection and treatment of abnormal heart beats.

According to the company, Bard EP will be integrated into Boston Scientific’s existing electrophysiology business under its Rhythm Management unit. For fiscal 2013, the company expects the acquisition to be neutral to its adjusted earnings per share, while for 2014, it is expected to be accretive by a penny. However, for both fiscals, acquisition-related charges as well as amortization will have a dilutive impact on GAAP earnings.

Currently, Boston Scientific’s electrophysiology business comprises only 2% of its overall product portfolio. In the last fiscal, the global net sales of Electrophysiology products were $147 million, while U.S. net sales were $108 million. Currently, the company is striving to strengthen its foothold in this business through innovations and acquisitions.

In 2012, BSX received Health Canada and CE Mark approval for its Blazer Open-Irrigated Catheter. This latest radiofrequency ablation (RFA) catheter is designed to treat a variety of arrhythmias such as atrial fibrillation, atrial flutter, ventricular tachycardia and other supraventricular tachycardias.

Additionally, on Oct 9, 2012, Boston Scientific acquired Rhythmia Medical, Inc., a developer of next-generation mapping and navigation solutions for use in cardiac catheter ablations and other electrophysiology procedures, including atrial fibrillation and atrial flutter. The company received CE Mark approval for the Rhythmia technology in the second quarter of 2013 and expects the U.S. FDA approval in the second half of the year.

We expect Boston Scientific’s recent endeavors to give a competitive edge in the fast-growing electrophysiology market. This strategy is significant given the comparatively poor performance of its core segments of stents and defibrillators.

The stock currently carries a Zacks Rank #3 (Hold). Other better-placed stocks like Align Technologies Inc., (ALGN - Analyst Report) and Mindray Medical International Limited (MR - Analyst Report), which carry a Zacks Rank #1 (Strong Buy), are expected to do well.

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