Is Sweden based Getinge investing in a solid, proven vascular product line? How are investors reacting to the news? Is the opportunity to present a venture investment prospect rare as life science venture capital firms see hundreds of deals per year?
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Medical device company Datascope Corp. agreed Tuesday to sell itself to medical technology company Getinge AB for $53 per share.
Getinge said it is paying a total of $865 million. The bid is a 7.7 percent premium to Monday’s closing price for Datascope, and just above the stock’s all-time high of $52.95, set Sept. 3. The buyout is expected to close by the end of 2008 if regulators and Datascope shareholders approve.
The deal requires approval from the holders of at least 50 percent of Datascope shares, and Chief Executive Lawrence Saper — who owns 18 percent of Datascope’s stock — said he has agreed to tender his shares.
Getinge of Sweden said the deal strengthens its cardiovascular franchise, and expects the buyout to increase profits starting in 2010.
Datascope said in June it would consider its strategic options, including a possible sale, after receiving interest from several buyers. The offers began after the company agreed to sell its patient monitoring business to Mindray Medical International Ltd. in March.
In premarket trading, Datascope shares gained $2.37, or 4.8 percent, to $51.60. The stock finished at $49.23 Monday, and has risen 57 percent over the last 12 months.