Johnson & Johnson (JNJ) has announced that it is buying Shockwave Medical (SWAV) for $12.5 billion U.S.
In a news release, Johnson & Johnson said that the deal will increase its portfolio of medical devices used to treat heart disease and other pulmonary ailments.
The transaction is the largest by Johnson & Johnson since its $16.6 billion U.S. acquisition of heart pump maker Abiomed in 2022.
Shockwave Medical specializes in medical devices that use shockwaves to break down calcified plaque in heart vessels. It’s a process that is similar to how kidney stones are broken apart.
Under terms of the deal, Johnson & Johnson has agreed to pay $335 U.S. per share in cash to acquire Shockwave Medical.
The purchase price represents a 5% premium to Shockwave Medical’s current share price of $319.99 U.S. The acquisition is expected to close this summer.
Fueled by takeover rumours, the stock of Shockwave Medical has risen 39% in the last year.
Johnson & Johnson’s stock has declined 8% over the last 12 months and currently trades at $152.50 U.S. per share.
