Nov 1 (Reuters) - Johnson & Johnson said on Tuesday it will buy heart pump maker Abiomed Inc in a deal valued at $16.6 billion to boost its cardiovascular devices business.
The upfront payment of $380 per share represents a 50.7% premium to Abiomed's last closing price. Shares of Abiomed surged 48% in premarket trade.
The deal comes at a time when J&J is spinning off its consumer health business to focus on its pharmaceuticals and medical devices operations.
Abiomed shareholders will also get rights to receive up to $35 per share in cash if certain commercial and clinical milestones are achieved.
The deal, expected to close before the end of the first quarter of 2023, will add to its adjusted earnings from 2024, the company said.
Heart disease is one of the leading causes of death in the United States, accounting for nearly 700,000 deaths in the country, as per government data for 2020. (Reporting by Raghav Mahobe and Leroy Leo in Bengaluru; Editing by Shounak Dasgupta)