Johnson & Johnson Makes $13 Billion Deal for Shockwave Medical
In a major move to expand its presence in the heart care market, Johnson & Johnson has announced a $13 billion deal to acquire Shockwave Medical. The deal, which has already been approved by the boards of both companies, will see J&J paying $335 in cash for each share of Shockwave.
Founded in 2009, Shockwave Medical specializes in intravascular lithotripsy technology, using sonic pressure waves to crack calcium lesions in arteries and restore blood flow. This innovative technology is used to treat coronary artery and peripheral artery disease, making it a valuable addition to J&J’s portfolio.
J&J Chief Financial Officer Joseph Wolk expressed optimism about the potential for growth in the market for this technology, both in the United States and internationally. The company expects annual sales to reach at least $1 billion, following the acquisition of Shockwave Medical.
This deal comes on the heels of J&J’s $16 billion acquisition of Abiomed, another cardiovascular technology company. Both acquisitions are aimed at strengthening J&J’s MedTech division, which is one of the company’s key focus areas after the recent split from its consumer health division.
While the deal still requires approvals from regulators and shareholders, both companies anticipate closing the acquisition by the middle of this year. Following the announcement, shares of J&J saw a slight increase, reflecting investor confidence in the strategic move. Shockwave Medical also experienced a surge in its stock price, indicating positive market sentiment towards the acquisition.