Stryker to Acquire Medical Device Maker Inari for $4.9 Billion

Key Takeaways

Shares of Inari Medical surged on Monday afternoon and again on Tuesday morning after reports of an imminent acquisition by Stryker turned into reality.
Stryker will acquire Inari in an all-cash deal for $80 per share, valuing it at roughly $4.9 billion.

The Acquisition Deal

Stryker’s acquisition of Inari Medical marks a significant expansion of the company’s portfolio in the medical device space. The transaction was first reported by Reuters on Monday afternoon, sending Inari shares up 30% by the end of Monday trading. The deal was announced after the bell on Monday, with Stryker agreeing to pay $80 per share for Inari, a price that the company’s stock had not reached since late 2022.

Company Profiles

Stryker is a leading medical technology company that manufactures a wide range of products, including hospital furniture, cleaning products, and orthopedic and neurological surgery tools. The company’s products are used in various medical specialties, including orthopedics, neurology, and spine. Inari Medical, on the other hand, specializes in vascular medical devices, providing innovative solutions for patients suffering from venous thromboembolism (VTE) and peripheral artery disease (PAD).

Inari Medical’s Focus Areas

Inari Medical focuses on developing cutting-edge technologies to treat VTE and PAD, two conditions that affect millions of people worldwide. The company’s products are designed to improve patient outcomes and reduce the risk of complications associated with these conditions. Inari’s medical devices have gained popularity in recent quarters due to increased demand for its products, particularly in the post-pandemic era.

Benefits of the Acquisition

The acquisition of Inari Medical by Stryker is expected to enhance the company’s portfolio in the medical device space, providing life-saving solutions for patients suffering from vascular diseases. The deal will also accelerate Stryker’s impact in endovascular procedures and elevate the standard of care for VTE patients.

CEO Comments

Stryker CEO Kevin Lobo commented on the acquisition, saying: "The acquisition of Inari expands Stryker’s portfolio to provide life-saving solutions to patients who suffer from peripheral vascular diseases. These innovations elevate the standard of care for venous thromboembolism patients and will accelerate Stryker’s impact in endovascular procedures."

Financial Impact

The companies expect the transaction to close in the first quarter of this year, with Stryker providing updates on how the deal will impact its financial performance during its upcoming earnings call on January 28. Inari’s shares rose 30% on Monday and another 21% on Tuesday morning, bringing them closer to the acquisition price.

Market Reaction

Stryker’s shares were down about 1.7% to $354.97 in premarket trading on Tuesday after finishing Monday’s session nearly flat following the Reuters report.

Conclusion

The acquisition of Inari Medical by Stryker is a significant development in the medical device industry, marking a strategic expansion for the company’s portfolio. The deal is expected to enhance Stryker’s presence in the vascular medical device market and provide life-saving solutions for patients suffering from VTE and PAD.