Johnson & Johnson (NYSE:JNJ) has agreed to acquire Shockwave Medical , Inc. (NASDAQ:SWAV) in a deal valued at approximately $13.1 billion, including cash acquired. The pharmaceutical giant will pay $335.00 for each outstanding share of Shockwave.
This move comes with the approval of both companies' boards of directors.
The acquisition is poised to boost the operating margins of both Johnson & Johnson and its MedTech branch, the company said in the press release.
Johnson & Johnson anticipates that the deal will immediately contribute to operational earnings following the closure. However, due to financing costs, it is expected to slightly reduce adjusted earnings per share—by about $0.10 in 2024 and $0.17 in 2025.
“With our focus on Innovative Medicine and MedTech, Johnson & Johnson has a long history of tackling cardiovascular disease – the leading cause of death globally,” said Joaquin Duato, chairman and CEO of JNJ.
“The acquisition of Shockwave and its leading IVL technology provides a unique opportunity to accelerate our impact in cardiovascular intervention and drive greater value for patients, shareholders and health systems.”
Shockwave develops a device that employs shockwaves to dismantle calcified plaque within the heart's vessels, mirroring the technique used in treating kidney stones.
Johnson & Johnson said last year it intends to explore potential mergers and acquisitions that could enhance its range of cardiovascular products. The company mentioned that it anticipated many of its forthcoming deals would be minor "tuck-in" takeovers.