Heart device maker St. Jude to buy Thoratec for $3.4 billion

Heart device maker St. Jude to buy Thoratec for $3.4 billion

(Reuters) – St. Jude Medical Inc agreed to buy smaller rival Thoratec Corp for approximately $3.4 billion to expand its portfolio of heart failure devices.

St. Jude said on Wednesday it would offer $63.50 per Thoratec share, which represents a premium of approximately 10 percent to the stock's Tuesday close.

Thoratec's shares closed up 18 percent on Tuesday after Bloomberg reported that St. Jude was in talks to buy the company.

p> Thoratec's shares rose 9 percent to $63 in premarket trading on Wednesday.

The deal, expected to close in the fourth quarter, is net of cash, the companies said.

Pleasanton, California-based Thoratec makes devices used for mechanical circulatory support to treat heart failure patients.

Buying Thoratec would assist St. Jude reduce its exposure to the cardiac rhythm management market, Wells Fargo analysts wrote in note on Tuesday.

Thoratec can solicit rival offers for the next 30 days under the agreement.

Bank of America Merrill Lynch is acting as financial adviser to St. Jude & has moreover provided financing. Gibson, Dunn & Crutcher LLP is serving as legal counsel.

Guggenheim Securities is acting as financial adviser to Thoratec & Latham & Watkins LLP is serving as legal counsel.

(Reporting by Vidya L Nathan in Bengaluru; Editing by Sriraj Kalluvila)

St. Jude Medical IncSt. JudeThoratec

Source: “Reuters”

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