Abiomed To Be Bought By Johnson & Johnson In $16.6 Bln Deal; Stock Surges In Pre-market

Drug major Johnson & Johnson (JNJ) Tuesday said it has entered into a definitive agreement to acquire Abiomed Inc. (ABMD), a provider of cardiovascular medical technology, for an upfront payment of $380.00 per share in cash.

In pre-market activity on Nasdaq, Abiomed shares were gaining around 51 percent to trade at $381.60.

The enterprise value of the acquisition is approximately $16.6 billion which includes cash acquired.

Abiomed shareholders will also receive a non-tradeable contingent value right or CVR entitling the holder to receive up to $35.00 per share in cash if certain commercial and clinical milestones are achieved.

Under the deal terms, a unit of Johnson & Johnson will commence a tender offer for all outstanding shares of Abiomed.

The transaction was unanimously approved by both companies' boards of directors, and the completion is expected prior to the end of the first quarter of 2023.

Johnson & Johnson expects to fund the transaction through a combination of cash on hand and short-term financing.

Following the completion of the deal, Abiomed will operate as a standalone business within Johnson & Johnson MedTech, becoming one of 12 JJMT priority platforms as defined by annual sales of at least $1 billion each.

The deal is expected to broaden Johnson & Johnson MedTech's position as a growing cardiovascular innovator.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Integrated energy company Chevron reported Friday that profit for the fourth quarter increased 25 percent from last year, reflecting 17 percent revenue growth amid higher realizations and higher margins on refined product sales. Adjusted earnings per share missed analysts' estimates, while quarterly revenues topped it. Reno, Nevada-based ZLINE Kitchen and Bath has expanded its recall of gas ranges citing serious risk of injury or death from carbon monoxide poisoning, the U.S. Consumer Product Safety Commission announced. The recall now includes about 30,000 units of ZLINE gas ranges, including about 28,000 units... The Food and Drug Administration's independent advisory committee unanimously recommended replacing the current original COVID vaccines used in the U.S. for primary shots with new bivalent omicron shots authorized as boosters, reports said. The committee also considered the proposal for annual COVID vaccination, however, didn't vote on it.
Follow RTT