SWAV - Johnson & Johnson to buy Shockwave Medical for $12.5 billion
2024-04-05 07:18:49 ET
Shockwave Medical Inc (NASDAQ: SWAV) is in the green today after Johnson & Johnson (NYSE: JNJ) said it will buy the medical device maker for $12.5 billion.
Shockwave Medical stock priced at a premium
The all-cash agreement values each share of Shockwave Medical at $335 – a 5.0% premium on their previous close.
JNJ expects the acquisition to help it further expand its footprint in cardiovascular interventions. Joaquin Duato – its chief executive said in a press release today:
Shockwave and its leading IVL technology provides a unique opportunity to accelerate our impact on cardiovascular intervention and drive greater value for patients, shareholders, and health systems.
The announcement arrives only days before Johnson & Johnson is scheduled to report its quarterly financial results. Consensus is for it to earn $2.63 a share versus $2.68 per share a year ago.
will be accretive to JNJ margin
JNJ expects to close this transaction in the second quarter of 2024 provided that it satisfies customary closing conditions including regulatory and shareholders’ approval.
Note that Shockwave Medical will delist from Nasdaq once this agreement is complete. Johnson & Johnson is confident that will help boost sales and be accretive to its operating margin upon closing.
Also today, the multinational pharmaceutical behemoth based out of New Brunswick, New Jersey recommended its shareholders to reject TRC Capital’s unsolicited mini-tender offer.
Wall Street currently has a consensus “overweight” rating on that pays a dividend yield of 3.12% at writing.
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