Early trading Tuesday showed a 22% bump for Inari Medical (NASDAQ:NARI), which rose from Monday when Stryker (NYSE:SYK) revealed an agreement to buy the medical equipment manufacturer for over $4.9 billion.
Paying $80 per share in cash, Stryker will be more than a 60% premium over Friday's closing price. Specialized in devices to treat venous thromboembolism, Inari's stock increased 56% over the past month in response to rumors of a possible merger.
Under the definitive agreement, Stryker will start a tender offer for every outstanding Inari share at $80 apiece. Any remaining shares will be bought at the same price via a second-step merger.Assuming normal closing circumstances, the transaction is projected to close by the end of the first quarter of 2025. On Jan. 28, Stryker intends to address the financial effects of the deal at its fourth-quarter 2024 conference call.
The agreement highlights Stryker's calculated attempt to increase its portfolio in vascular treatments and profit from Inari's discoveries in blood clotting disorders.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.