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The upfront payment of $380 per share represents a 50.7% premium to Abiomed’s last closing price. Shares of Abiomed surged 48% in premarket trade.
Abiomed shareholders will also get a non-tradeable contingent value right entitling the holder to receive up to $35 per share in cash if certain commercial and clinical milestones are achieved.
The transaction broadens J&J (NYSE:JNJ)’s MedTech as a cardiovascular innovator, advancing the standard of care in one of healthcare’s largest unmet need, heart failure and recovery, the company said.
The deal comes at a time when J&J is spinning off its consumer health business to focus on its pharmaceuticals and medical devices operations.
