Johnson & Johnson (J&J) has entered into a definitive agreement to acquire breakthrough heart, lung and kidney support technology developer, Abiomed.
Abiomed is a first-to-market provider of cardiovascular medical technology with a portfolio for the treatment of coronary artery disease and heart failure.
The company’s products designed to enable the heart to rest by improving blood flow and/or performing the pumping of the heart.
J&J will acquire through a tender offer all outstanding shares of Abiomed, for an upfront payment of $380.00 per share in cash, corresponding to an enterprise value of approximately $16.6 billion which includes cash acquired.
The transaction broadens Johnson & Johnson MedTech’s (JJMT) cardiovascular innovation portfolio, with the company hoping to advance heart failure and recovery standard of care.
Joaquin Duato, Chief Executive Officer of Johnson & Johnson, said:
“The addition of Abiomed is an important step in the execution of our strategic priorities and our vision for the new Johnson & Johnson focused on Pharmaceutical and MedTech.
“We have committed to enhancing our position in MedTech by entering high-growth segments.
“The addition of Abiomed provides a strategic platform to advance breakthrough treatments in cardiovascular disease and helps more patients around the world while driving value for our shareholders.”
Michael R. Minogue, Abiomed’s Chairman, President and Chief Executive Officer, said:
“We are pleased to have reached an agreement that reflects the remarkable value Abiomed created with our revolutionary Impella heart pump platform and promising pipeline.
“This transaction partners us with an organization that shares our patients-first mindset and creates immediate value for our patients, customers, employees and shareholders.
“It will enable us to leverage Johnson & Johnson’s global scale, commercial strength and clinical expertise to accelerate our mission of making heart recovery the global standard of care.”
