Johnson & Johnson Agrees to $13.1 Billion Acquisition of Shockwave Medical, Strengthening its Position in Cardiovascular Intervention. The Corporation based in New Brunswick, New Jersey, will pay $335 per share in cash, a 4.7% premium over Shockwave's closing price on Thursday and nearly 17% above its price before the Wall Street Journal reported on a potential takeover.

Johnson & Johnson plans to finance the acquisition with existing cash and debt, with the enterprise value of 13.1 billion US dollars also including the acquired cash. The acquisition of Shockwave is expected to expand J&J's MedTech portfolio in the cardiovascular diseases area by two rapidly growing segments, coronary artery disease and peripheral artery disease.

To strengthen its MedTech segment, J&J recently acquired the cardiac device company Abiomed for 16.6 billion US dollars and Laminar for an initial 400 million US dollars. The financing costs of the Shockwave acquisition are expected to reduce adjusted earnings per share by 10 cents this year and by 17 cents in 2025.

CEO Joaquin Duato comments on the company's aggressive acquisition goals to expand the medical device business, which has lagged behind the pharmaceutical unit in recent years. Shockwave, whose market value was around 11 billion US dollars before reports of the deal talks, manufactures medical devices for treating cardiovascular diseases. CEO Doug Godshall has been in charge of the company since 2017 and took it public in 2019.