J&J Boosts Its Heart Device Business in $13.1 Billion Deal for Shockwave

Johnson & Johnson on Friday agreed to buy Shockwave Medical in a deal valued at $13.1 billion including debt, as it builds its cardiac-health-centric medical devices business to help drive growth.

J&J has offered $335 per share in cash that values the equity portion at $12.5 billion, based on Reuters’ calculations. The offer also represents a 17% premium to the stock’s closing price in late March, when the Wall Street Journal reported J&J’s interest in Shockwave, whose shares were currently trading at $326.82.

The acquisition gives J&J access to a device that uses shockwaves to break down calcified plaque in heart vessels, similar to how kidney stones are treated. RBC analysts estimate the total addressable market for similar therapies at about $10 billion.

Read the source article at Yahoo Finance