Stryker has solidified a definitive agreement to acquire Inari Medical for $80 per share, a substantial markup valuing the transaction at $4.9 billion. Prior to the announcement, Inari Medical’s shares were trading at around $48.
Endorsed by both Stryker’s board in Portage, Michigan – the second-largest orthopedic device firm globally and the fifth-largest medical device company – and Inari Medical in Irvine, California, a developer of thrombectomy systems for venous disease treatment, the acquisition is set to conclude by the end of Q1 2025, contingent upon regulatory and standard approvals.
Stryker described Inari’s offerings as innovative and having high synergy with its Neurovascular division, which is involved in creating systems for vascular access, embolization, thrombectomy, angioplasty, and stenting.
Kevin Lobo, Stryker’s Chair and CEO, commented on the acquisition’s enhancement of their portfolio, emphasizing its potential to advance care standards for venous thromboembolism and boost Stryker’s role in endovascular procedures.
Inari’s lineup features nitinol-based devices, such as FlowTriever, ClotTriever, LimFlow, and the newly developed Artix system for acute limb ischemia.
CEO of Inari, Drew Hykes, noted the company’s success in touching countless patient lives, stating that Stryker’s resources would further accelerate new solution development and global reach.
Andy Pierce of Stryker’s M&A division discussed this acquisition among others during a recent interview, while financial analysts shared varying perspectives on the deal’s impact.
A detailed financial outlook will be provided by Stryker’s executives during the Q4 2024 earnings call on January 28. Projections from Needham & Co. suggest the acquisition will slightly enhance Stryker’s organic growth and gross margin but may have a small dilutive effect on its 2025 earnings per share.
BTIG’s Ryan Zimmerman noted minimal regulatory difficulties but remarked on potential competition in the peripheral vascular market, specifically mentioning Penumbra’s recent product launches. Zimmerman also addressed the ongoing DOJ investigation into Inari but expressed confidence in Stryker’s ability to navigate the issue.