Boston Scientific Corp. is beginning its foray into the business of men's health with its acquisition of Endo International's American Medical Systems (AMS) urology portfolio for $1.65 billion.

On Monday, Mar. 2, both companies officially announced the deal. The $1.65 billion purchase will include $1.6 billion in up-front cash and the likely addition of $50 million if sales targets are achieved for 2016. The deal is expected to close in the third quarter of 2015.

Boston Scientific is a worldwide developer, manufacturer and marketer of medical devices. The company announced that with the latest deal, AMS's prostate and men's health businesses will become part of Boston Scientific Urology and Women's Health. The deal does not include AMS' women's health business. However, Endo International is believed to evaluate the strategic option for this division as well.

"We believe this strategic acquisition will strengthen Boston Scientific's global leadership in the urology device category while delivering a strong return to our investors," says Mike Mahoney, president and CEO of Boston Scientific.

Mahoney also added that the latest acquisition will complement the company's existing treatments that are available for female urologic and gynecological disorders. In the last few years, Boston Scientific has also tried to diversify the company's product portfolio so that revenues are not highly dependent upon the cardiac devices sales, which account for over 50 percent of all sales.

The company also announced that it hopes to develop a business of about $1 billion in sales each year by combining its Urology and Women's Health and AMS' urology portfolios. Boston Scientific also hopes to expand in the international market for future growth.

While Boston Scientific will diversify in new markets, Endo International on the other hand revealed that the latest transaction would help the company's transition into a global specialty pharmaceuticals business.

"The divestiture of AMS marks the continued execution of our business strategy and furthers the transformation of Endo into a leading global specialty pharmaceutical company," says Rajiv De Silva, president and CEO of Endo.

In 2014, Endo International acquired DAVA Pharmaceuticals and Boca Pharmacal, which added to the company's drug portfolio. In October 2014, Endo also announced that it would acquire Auxilium Pharmaceuticals for $2.6 billion. The transaction completed in January this year.

The latest acquisition and sell-offs are proving beneficial for Endo International. On Mar. 2, the company also released its fourth quarter and 2014 full year financial results.

The company reported that its 2014 fourth quarter revenues were $800 million, which is an increase of 37 percent when compared to same period in 2013, which accounted for $585 million in revenues. The net loss in the quarter also reduced to $53 million in comparison to $776 million as reported in Q4 2013.

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