Medtronic said it would buy HeartWare International for about $1.1 billion, bulking up its portfolio of devices aimed at treating heart diseases.
The $58-per-share cash offer represents a premium of 93.5% to HeartWare’s Friday close of $29.98.
HeartWare’s (HTWR) shares jumped to $57.3 in premarket trading Monday, while Medtronic’s (MDT) shares were down 2.4%.
HeartWare’s flagship product, the HVAD System, is placed in the body through a less-invasive surgical procedure and assists with blood flow when the heart is unable to pump blood efficiently.
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Medtronic has been investing in medical technology companies that make less-invasive surgical devices.
Last month Medtronic bought a stake in Mazor Robotics, a tiny Israeli robotics company, and acquired Smith & Nephew (SNN) gynecology unit.
The HeartWare acquisition is expected to close during Medtronic’s second fiscal quarter ending Oct. 28.