Stryker Corporation SYK recently inked a definitive agreement to acquire all the issued and outstanding shares of common stock of Inari Medical, Inc. NARI for $80 per share in cash, representing a total fully diluted equity value of approximately $4.9 billion.

Through the acquisition of Inari Medical, Stryker is likely to expand its portfolio and provide life-saving solutions to patients with peripheral vascular diseases.

Likely Trend of SYK Stock Following the News

Following the announcement, shares of the company moved south 2.5% after the market closed on Monday. In the past year, SYK’s shares have gained 20.4% compared with the industry’s growth of 8.5%. The S&P 500 has gained 26% in the same time frame.

However, Stryker's acquisition of Inari Medical positions it in the rapidly growing peripheral vascular segment, an area with increasing demand for innovative medical solutions. This strategic move enhances Stryker's portfolio, potentially boosting revenues through access to Inari Medical's high-growth technologies for venous and arterial conditions. By diversifying its offerings and tapping into a robust market, Stryker can strengthen its competitive edge and drive long-term profitability, which is likely to positively influence investor confidence and its stock price over time.

Meanwhile, SYK currently has a market capitalization of $137.8 billion. It has an earnings yield of 3.7%, much higher than the industry’s yield of 0.3%. In the last reported quarter, SYK delivered an earnings surprise of 3.24%.

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More on the SYK’s Acquisition News

Stryker’s acquisition of Inari Medical marks a strategic entry into the high-growth peripheral vascular market. This segment focuses on treating conditions affecting veins and arteries outside the heart and brain. Inari Medical specializes in devices for venous thromboembolism (VTE), a critical condition caused by blood clots in the veins. With Inari Medical's innovative technologies, Stryker strengthens its product portfolio and positions itself in a market experiencing increased demand due to rising awareness and improved diagnostic practices.

Under the agreement, Stryker plans to acquire Inari Medical by offering $80 per share in cash for all outstanding shares. The deal, approved by both companies' boards of directors, requires a majority tender of Inari Medical’s shares, regulatory clearance under the Hart-Scott-Rodino Antitrust Improvements Act, and other standard conditions.

Following the successful completion of the tender offer, Stryker will acquire all remaining shares not tendered in the offer through a second-step merger at the same price as in the tender offer. The transaction is expected to close by the first quarter of 2025, and its financial impacts will be discussed in Stryker’s fourth-quarter 2024 earnings call on Jan. 28, 2025.

More on Stryker’s Past Acquisitions

Stryker has been following an acquisition-driven strategy to boost its growth profile.

In October 2024, SYK announced the completion of the acquisition of Vertos Medical.Through the acquisition, Stryker can access more ambulatory surgery facilities and diversify its offerings for minimally invasive pain management.

In September 2024, the company inked a deal to acquire care.ai. care.ai is likely to add artificial intelligence (AI)-assisted virtual care workflows, smart room technology and ambient intelligence solutions. In the same month, it announced the completion of the acquisition of NICO Corporation to strengthen its portfolio of solutions for tumor resection and the treatment of intracerebral hemorrhage.

Industry Prospects in Favor of SYK

Per a report by Future Market Insight, the global VTE treatment market was projected to be $1.76 billion in 2024 and is expected to reach $2.58 billion by 2034, representing a CAGR of 3.9% during the forecast period.

Factors such as aging populations, sedentary lifestyles, obesity, and increasing surgical procedures contribute to the growing prevalence of venous VTE. Given the market potential, Stryker’s acquisition of Inari Medical is likely to boost the company’s business and generate additional revenues.

SYK’s Zacks Rank & Stocks to Consider

SYK carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the broader medical space are Masimo MASI and  Accuray ARAY.

Masimo, carrying a Zacks Rank #2 (Buy) at present, has an estimated growth rate of 11.8% for 2025. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

MASI’s earnings surpassed estimates in each of the trailing four quarters, delivering an average surprise of 17.10%. Its shares have risen 31.7% against the industry’s 1% decline in the past six months.

Accuray, carrying a Zacks Rank #2 at present, has an estimated growth rate of 1200% for 2025. Its earnings missed estimates in three of the trailing four quarters and met in one, delivering an average negative surprise of 141.97%.

ARAY’s shares have gained 8.8% against the industry’s 1% decline in the past six months.

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Accuray Incorporated (ARAY) : Free Stock Analysis Report

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