Key Takeaways
Shares of Inari Medical surged on Monday afternoon and again on Tuesday morning as reports of an imminent acquisition by Stryker turned into reality. Stryker will acquire Inari in an all-cash deal for $80 per share, valuing it at roughly $4.9 billion.
The Deal Comes to Fruition
The deal for the vascular medical device maker was first reported by Reuters on Monday afternoon, sending Inari shares up 30% by the end of Monday trading. Inari Medical (NARI) stock skyrocketed on Monday afternoon and again on Tuesday morning after a report that it was close to being acquired by Stryker (SYK) proved to be true.
The companies announced the deal after the bell on Monday. Stryker will acquire Inari for $80 per share—a price Inari shares were last at in late 2022. The deal values the company at roughly $4.9 billion, the companies said.
A Strategic Move by Stryker
Stryker manufactures a wide variety of medical products, from furniture like hospital beds and cleaning products to orthopedic and neurological surgery tools. Inari focuses on ailments like venous thromboembolism (VTE), or blood clots in a patient’s veins, providing surgical products to treat the issues.
The Benefits of the Acquisition
The acquisition of Inari will increase Stryker’s product offerings in the medical device space to treat vascular issues like blood clots, the companies said. Inari recently said it has seen demand for its medical devices increase in recent quarters as elective surgeries have picked up post-pandemic, according to Reuters.
"The acquisition of Inari expands Stryker’s portfolio to provide life-saving solutions to patients who suffer from peripheral vascular diseases," said Kevin Lobo, CEO of Stryker. "These innovations elevate the standard of care for venous thromboembolism patients and will accelerate Stryker’s impact in endovascular procedures."
Expected Impact on Financial Performance
The companies expect the transaction to close in the first quarter of this year, and Stryker said it will provide updates on how the deal will impact the company’s financial performance for this fiscal year in its upcoming earnings call on January 28.
Stryker shares were down about 1.7% to $354.97 in premarket trading on Tuesday after finishing Monday’s session nearly flat following the Reuters report.
What Does This Mean for Inari Medical?
The acquisition of Inari by Stryker is a significant development for the vascular medical device industry. With this deal, Stryker will gain access to Inari’s innovative products and technologies that are designed to treat VTE and other vascular conditions.
Inari Medical has been at the forefront of developing solutions for VTE, which affects millions of people worldwide. The company’s products have been shown to be effective in reducing complications associated with blood clots.
The Future Outlook
With Stryker’s acquisition of Inari, patients will benefit from more advanced and innovative treatments for vascular conditions. This deal is a testament to the growing demand for medical devices that can help prevent and treat VTE.
As the healthcare landscape continues to evolve, companies like Stryker and Inari Medical are at the forefront of innovation, driving advancements in medical technology. The acquisition of Inari by Stryker is a strategic move that will undoubtedly have far-reaching implications for the industry as a whole.
How Will This Impact the Market?
The market reaction to the news has been positive, with shares of Inari Medical surging on Monday and Tuesday mornings. As the deal becomes final, investors are eagerly awaiting the potential impact on Stryker’s financial performance.
While some may be concerned about the integration process, many experts believe that this acquisition will drive growth for both companies. The combination of Stryker’s existing product portfolio with Inari Medical’s innovative technologies is expected to lead to increased efficiency and better patient outcomes.
Timeline of Events
- Monday afternoon: Reuters reports that Stryker is close to acquiring Inari Medical.
- Monday evening: Stryker announces its intention to acquire Inari for $80 per share.
- Tuesday morning: Shares of Inari Medical surge in response to the news, reaching an all-time high of around $78.75.
Conclusion
The acquisition of Inari Medical by Stryker is a significant development in the vascular medical device industry. With this deal, patients will benefit from more advanced and innovative treatments for vascular conditions.
As the healthcare landscape continues to evolve, companies like Stryker and Inari Medical are driving advancements in medical technology. The future outlook for these companies is bright, and investors should keep a close eye on their performance in the coming months.
