PORTAGE, Mich. - Stryker Corporation (NYSE: NYSE:SYK), a global leader in medical technologies, has initiated a cash tender offer through its subsidiary, Eagle 1 Merger Sub, Inc., to acquire all outstanding shares of Inari Medical (TASE:PMCN), Inc. (NASDAQ: NARI) for $80.00 per share. The offer represents a slight premium to Inari's current trading price of $79.55, valuing the company at approximately $4.66 billion. This move follows a merger agreement dated January 6, 2025, and is in line with the company's strategy to expand its portfolio in the medical technology sector. According to InvestingPro analysis, Inari's stock is currently trading near its 52-week high of $79.69.
The tender offer, which began today, is set to expire just after midnight on February 18, 2025, unless it is extended as per the merger agreement terms. The successful completion of the offer is contingent on several conditions, including the acquisition of a majority of Inari's issued and outstanding common stock, the expiration or termination of the waiting period stipulated by the Hart-Scott-Rodino Antitrust Improvements Act, and other customary closing conditions.
Inari Medical's Board of Directors has recommended that its shareholders accept the tender offer and tender their shares, as detailed in a Schedule 14D-9 filed with the U.S. Securities and Exchange Commission (SEC). This recommendation has been made in conjunction with the tender offer statement on Schedule TO filed by Stryker, which outlines the terms of the offer. Shareholders and interested parties can access these documents, as well as other relevant tender offer materials, free of charge on the SEC's website or through the information agent for the tender offer, Innisfree M&A Incorporated.
The transaction is expected to close by the end of the first quarter of 2025, provided all conditions are met. Both Stryker and Inari Medical are committed to improving healthcare outcomes, with Stryker impacting over 150 million patients annually through its diverse range of products and services in MedSurg, Neurotechnology, Orthopaedics, and Spine. Inari Medical focuses on creating innovative solutions for venous thromboembolism and other targeted disease states, aiming to establish its treatments as the standard of care. InvestingPro data shows Inari has demonstrated strong operational performance with impressive gross profit margins of 86.82% and robust revenue growth of 22.41% over the last twelve months. For detailed analysis of Inari's financial health and growth prospects, access the comprehensive Pro Research Report available on InvestingPro, covering over 1,400 US stocks.
This news is based on a press release statement. The completion of the acquisition is subject to various risks and uncertainties, including the possibility of not receiving the necessary stockholder tender or regulatory approvals, which could prevent the transaction from being finalized within the anticipated timeline or at all.
In other recent news, Stryker Corporation is set to acquire Inari Medical for $80 per share, a deal valuing Inari at approximately $4.9 billion. The merger is expected to bolster Stryker's neurology franchise and offer an entry into the peripheral vascular sector. Following this announcement, Inari Medical's stock rating was downgraded from Buy to Neutral by BTIG, and the price target was adjusted to $80 by Piper Sandler, Baird, and Canaccord Genuity.
Inari Medical recently reported a record Q3 revenue of $153.4 million, a 21% year-over-year increase, and raised its full-year revenue outlook to between $601.5 million and $604.5 million. The company's ClotTriever Thrombectomy System for deep vein thrombosis has also received national reimbursement approval in Japan.
These developments follow the company's impressive gross profit margins of nearly 87% and moderate debt level. However, with the acquisition price set and the stock trading close to that value, analysts believe there is limited upside for investors at this stage.
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