Heartware International (NASDAQ: HTWR) is watching its shares absolutely skyrocket in Monday’s session despite the huge market downturn from the Brexit. This surge is the result of Medtronic PLC (NYSE: MDT) moving to acquire Heartware. The companies announced that they have entered into a definitive merger agreement under which Medtronic will acquire HeartWare in a transaction valued at approximately $1.1 billion.
Under the terms of the agreement, Medtronic will commence a tender offer for all outstanding shares of HeartWare common stock for $58.00 per share, in cash.
Both boards of directors have unanimously approved the transaction, which is expected to close during Medtronic’s second fiscal quarter ending in October 2016. The transaction is subject to customary closing conditions.
By making this acquisition Medtronic is looking to expand its portfolio of diagnostic tools, therapies and services for patients suffering from heart failure. Ultimately, Medtronic has its eyes on HeartWare’s flagship product, the HVAD System, which features the world’s smallest full-support ventricular assist device (VAD) and is designed to reduce surgical invasiveness, improve patient recovery times and enhance patient outcomes.
Mike Coyle, executive vice president and President of the Cardiac and Vascular Group at Medtronic, commented:
The addition of HeartWare’s innovative portfolio adds to our expanding portfolio of diagnostics, therapeutics and services that address heart failure patients. The team at HeartWare has established excellent relationships with its hospital customers and built a strong position and reputation in the marketplace. This transaction, once closed, will be a further, important step toward Medtronic offering a complete suite of solutions to address patient needs across the heart failure care continuum.
Shares of Medtronic were last trading down 1.8% at $81.76, with a consensus analyst price target of $88.75 and a 52-week trading range of $55.54 to $86.31.
Shares of Heartware were recently trading up over 90% at $57.48, with a consensus analyst price target of $39.58 and a 52-week trading range of $25.02 to $94.15.
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
