Medical device maker Medtronic said Monday it would buy HeartWare International, a company best known for its HVAD heart pump designed to help with heart failure for $1.1 billion. The mechanical pump requires less invasive surgery than other treatments for heart failure.
At $58 per share, the deal is nearly double the $29.98 HeartWare closed at on Friday. HeartWare shares ended trading Monday up $27.81, or 93%, to close at $57.79. Medtronic fell $0.88 to $82.38.
The acquisition bolsters Medtronic's standing in heart and vascular treatment options, an area that Medtronic estimates could exceed over eight million patients by 2030. In data published in 2010, the National Center for Biotechnology Information estimated heart failure expenditures to be $39 billion per year in the United States. According to the CDC, circulatory diseases are responsible for one in every four deaths in the US.
Both companies boards have unanimously approved the purchase, with the acquisition expected to be completed during Medtronic's second fiscal quarter ending Oct. 28.
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