St. Jude Medical is to acquire all of the outstanding shares of Thoratec for $63.50 per share in a cash transaction valued at approximately $3.4 billion, net of cash acquired. The transaction is expected to be completed in the fourth quarter of 2015.
Often covered on our pages, Thoratec is the leader in mechanical circulatory support (MCS) technology for the treatment of advanced heart failure (HF), which includes ventricular assist devices (VADs) that are used for both chronic and acute patient support. St. Jude’s rationale is that the combination of its product lines with Thoratec’s will offer the most comprehensive portfolio of products for the management and treatment of heart failure and in so doing accelerate its growth strategy.
Thoratec shareholders will receive $63.50 for each share of Thoratec common stock they own in an all-cash transaction, representing a premium of 40.1 percent compared to $45.34, Thoratec’s volume-weighted average trading price for the 30 trading day period ending July 17, 2015, and a 35.4 percent premium to the closing price on Thoratec’s last unaffected trading date on July 17, 2015 of $46.89.
The merger agreement includes a “go-shop” period, during which Thoratec will actively solicit alternative proposals from third parties for the next 30 days continuing through August 20, 2015.
for St. Jude
“Thoratec’s strong core business and rich portfolio of new products complement St. Jude Medical’s innovation-based growth strategy and will benefit patients, customers, employees and shareholders of both companies,” said Daniel J. Starks, Chairman, President and Chief Executive Officer of St. Jude Medical. “The addition of Thoratec’s leading ventricular assist device portfolio expands and enhances St. Jude Medical’s established presence in heart failure therapies. We look forward to welcoming Thoratec employees to our company at such an exciting time in our history.”
“Thoratec is pleased to join St. Jude Medical as we create a company that’s uniquely positioned to advance treatment options for patients living with heart failure,” said D. Keith Grossman, President and Chief Executive Officer of Thoratec. “By combining the capabilities and leading technologies of both companies, we will be able to expand access, reduce costs and advance heart failure therapies on a global basis. Our employees and customers have worked together tirelessly over many years to create the market leader Thoratec has become. It is gratifying to see the creation of a combined product platform and capability with St. Jude Medical that will fulfill the promise of our products to many, many more patients in the years to come.”
Source: Business Wire