Inari Medical stock soars on $4.9B Stryker acquisition deal

Investing.com -- Shares of Inari Medical (TASE:PMCN ) (NASDAQ:NARI) soared today after Stryker (NYSE:NYSE:SYK ), a prominent player in the medical technology field, announced a definitive agreement to purchase all outstanding shares of Inari Medical for $80 per share in cash. This acquisition is valued at approximately $4.9 billion on a fully diluted equity basis.

The significant rise in Inari's stock price followed a press release that confirmed the acquisition deal, which came hours after Reuters reported that the two companies were engaged in merger discussions. The acquisition is set to enhance Stryker's portfolio by adding Inari's specialized peripheral vascular position in the rapidly expanding venous thromboembolism (VTE) market. Inari is known for its innovative mechanical thrombectomy solutions for peripheral vascular diseases, including deep vein thrombosis and pulmonary embolism, which are highly complementary to Stryker's Neurovascular business.

Kevin Lobo, Chair and Chief Executive Officer of Stryker, commented on the deal stating, “The acquisition of Inari expands Stryker's portfolio to provide life-saving solutions to patients who suffer from peripheral vascular diseases.” He emphasized that these innovations will elevate the standard of care for VTE patients and will accelerate Stryker’s impact in endovascular procedures.

Drew Hykes, Chief Executive Officer of Inari, also expressed optimism about the acquisition, saying, “With Stryker’s capabilities and global infrastructure, we will be even better positioned to accelerate the development of innovative new solutions and expand our footprint.”

The transaction is structured as a tender offer for all outstanding shares of Inari, unanimously approved by both companies' boards of directors. The completion of the tender offer is contingent upon a minimum tender of at least a majority of Inari's outstanding common shares, among other customary conditions. Following the successful completion of the tender offer, Stryker will acquire any remaining shares not tendered through a second step merger at the same price. The deal is expected to close by the end of the first quarter of 2025, with the anticipated financial impacts to be discussed on Stryker’s fourth quarter 2024 earnings call scheduled for January 28, 2025.

This strategic acquisition is poised to significantly impact the medical technologies market, particularly in the treatment of VTE, which affects up to 900,000 individuals annually in the United States alone.

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Source: Investing.com