Johnson & Johnson (J&J) continues to expand its portfolio in the medical device industry with the recent announcement of its acquisition of Shockwave Medical for $12.5 billion. This deal is a strategic move by J&J to enhance its offerings in treating heart diseases.
Shockwave Medical is known for its innovative technology that uses shockwaves to break down calcified plaque in heart vessels, similar to the treatment of kidney stones. By acquiring Shockwave, J&J aims to bolster its cardiac health business, following previous acquisitions of heart pump maker Abiomed and heart-centric device maker Laminar.
The deal, expected to close by mid-2024, will value Shockwave at an enterprise value of approximately $13.1 billion. J&J plans to finance the acquisition with a combination of cash on hand and debt, offering $335 per share in cash to Shockwave shareholders, representing a 17% premium to the company’s closing price in late March.
Following the announcement, Shockwave shares rose 1.6% to $325.18 in premarket trading, reflecting investor optimism towards the acquisition. This strategic move by J&J reaffirms its commitment to advancing cardiac health solutions and solidifying its position in the competitive medical device market.
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