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Key Takeaways
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Shares of Inari Medical surged Monday afternoon and again Tuesday morning as reports of an imminent acquisition by Stryker turned into reality.
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Stryker will acquire Inari in an all-cash deal for $80 per share, valuing it at roughly $4.9 billion.
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The deal for the vascular medical device maker was first reported by Reuters Monday afternoon, sending Inari shares up 30% by the end of Monday trading.
Inari Medical (NARI) stock skyrocketed Monday afternoon and again 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 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.
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, or blood clots in a patient's veins, providing surgical products to treat the issues.
Inari Shares Rose 30% Monday, Over 20% Tuesday Morning
The deal was first reported to be near completion by Reuters Monday afternoon, and that news sent Inari stock just over 30% higher to $65 before Monday's trading session closed. In premarket trading Tuesday, shares were up another 21% to around $78.75, bringing shares closer to the acquisition price Stryker is set to pay.
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, per Reuters.
“The acquisition of Inari expands Stryker's portfolio to provide life-saving solutions to patients who suffer from peripheral vascular diseases,” Stryker CEO Kevin Lobo said. “These innovations elevate the standard of care for venous thromboembolism patients and will accelerate Stryker’s impact in endovascular procedures.”
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 Jan. 28.
Stryker shares were down about 1.7% to $354.97 in premarket trading Tuesday after finishing Monday's session nearly flat following the Reuters report.
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