Inari Medical Shares Surge Following $4.9 Billion Stryker Acquisition Deal
Inari Medical (NASDAQ:NARI) shares rose today following the announcement that leading medical technology player Stryker (NYSE:SYK) has signed a definitive agreement to acquire all outstanding shares of Inari Medical for $80 per share in cash. This acquisition values Inari at approximately $4.9 billion on a fully diluted equity basis.
The significant increase in Inari's stock price came just hours after a press release confirmed the acquisition agreement, following reports by Reuters that the two companies were in merger discussions. The acquisition will expand Stryker’s portfolio by adding Inari’s unique peripheral vascular positioning in the rapidly growing venous thromboembolism (VTE) market. Inari is known for its innovative mechanical thrombectomy solutions for peripheral vascular diseases, including deep vein thrombosis and pulmonary embolism, which are highly complementary to Stryker's Neurovascular business.
Kevin Lobo, Stryker's Chairman and CEO, stated regarding the deal, "The acquisition of Inari expands Stryker's portfolio to provide life-saving solutions to patients suffering from peripheral vascular diseases." He emphasized that these innovations will elevate the standard of care for VTE patients and accelerate Stryker's impact in endovascular procedures.
Inari's CEO Drew Hykes also expressed optimism about the acquisition, stating, "With Stryker’s capabilities and global infrastructure, we will be in an even better position to develop innovative new solutions and expand our footprint."
The transaction is structured as a tender offer for all of Inari’s currently outstanding shares, which has been unanimously approved by the boards of both companies. Completion of the tender offer is contingent upon the tendering of at least a majority of Inari's outstanding common shares, along with other customary conditions. Upon successful completion of the tender offer, Stryker will acquire any remaining untendered shares through a second-step merger at the same price. The deal is expected to close by the end of the first quarter of 2025, with anticipated financial impacts to be discussed during Stryker's fourth quarter 2024 earnings call scheduled for January 28, 2025.
This strategic acquisition is set to significantly impact the medical technologies market for VTE treatment, which affects 900,000 people annually in the U.S. alone.