Johnson & Johnson to buy Abiomed for $16.6 billion to boost cardiovascular business

Nov 1 (Reuters) – Johnson & Johnson (JNJ.N) said on Tuesday it would buy Abiomed Inc (ABMD.O) for $16.6 billion in a bid to boost the healthcare group’s cardiovascular equipment business.

The $380 per share advance represents a 50.7% premium to Abiomed’s last closing price. Shares of Abiomed surged 48% in premarket trading.

Abiomed shareholders will also receive non-tradable contingent value rights that entitle holders to up to $35 per share in cash if certain commercial and clinical milestones are reached.

The company said the deal expands J&J’s MedTech’s reach as a cardiovascular innovator, raising the standard of care in one of healthcare’s largest unmet needs, heart failure and recovery.

The deal comes as J&J spins off its consumer health business to focus on its pharmaceuticals and medical device businesses.

Reporting by Raghav Mahobe and Leroy Leo in Bengaluru; Editing by Shounak Dasgupta

Our Standard: The Thomson Reuters Trust Principles.

Source link