Medtronic to Buy HeartWare International for $1.1 bln
Medtronic Plc said it would buy HeartWare International Inc for about $1.1 billion, bulking up its portfolio of devices aimed at treating heart diseases.
The $58-per-share cash offer represents a premium of 93.5 percent to HeartWare's Friday close of $29.98.
HeartWare's shares jumped to $57.3 in premarket trading on Monday, while Medtronic's shares were down 2.4 percent.
HeartWare's flagship product, the HVAD System, is placed in the body through a less-invasive surgical procedure and assists with blood flow when the heart is unable to pump blood efficiently.
Medtronic has been investing in medical technology companies that make less-invasive surgical devices.
Last month, Medtronic bought a stake in Mazor Robotics Ltd , a tiny Israeli robotics company, and acquired Smith & Nephew Plc's gynecology unit.
The HeartWare acquisition is expected to close during Medtronic's second fiscal quarter ending Oct. 28.
Medtronic's financial adviser for the transaction was J.P. Morgan Securities LLC. Ropes & Gray LLP was the legal counsel.
HeartWare was advised by Perella Weinberg Partners LP, with Shearman & Sterling LLP acting as legal adviser. (Reporting by Amrutha Penumudi in Bengaluru; Editing by Shounak Dasgupta and Saumyadeb Chakrabarty)