Johnson & Johnson is to acquire Abiomed, it was announced today, after the two organisations entered into a definitive agreement under which Johnson & Johnson will acquire all outstanding shares of Abiomed through a tender offer.
The transaction will include an upfront payment of US$380 per share in cash, corresponding to an enterprise value of approximately US$16.6 billion which includes cash acquired. Abiomed shareholders will also receive a non-tradeable contingent value right (CVR) entitling the holder to receive up to US$35.00 per share in cash if certain commercial and clinical milestones are achieved. The transaction was unanimously approved by both companies’ boards of directors.
In a press release Johnson & Johnson describes Abiomed as a “first-to-market provider of cardiovascular medical technology with a first-in-kind portfolio for the treatment of coronary artery disease and heart failure, an extensive innovation pipeline of life-saving technologies, and an 18-year track record of profitable growth”.
“The addition of Abiomed is an important step in the execution of our strategic priorities and our vision for the new Johnson & Johnson focused on pharmaceutical and medtech,” said Joaquin Duato, chief executive officer of Johnson & Johnson. “We have committed to enhancing our position in medtech by entering high-growth segments. The addition of Abiomed provides a strategic platform to advance breakthrough treatments in cardiovascular disease and helps more patients around the world while driving value for our shareholders.”
“We are pleased to have reached an agreement that reflects the remarkable value Abiomed created with our revolutionary Impella heart pump platform and promising pipeline,” said Michael R Minogue, Abiomed’s chairman, president and chief executive officer. “This transaction partners us with an organisation that shares our patients-first mindset and creates immediate value for our patients, customers, employees and shareholders. It will enable us to leverage Johnson & Johnson’s global scale, commercial strength and clinical expertise to accelerate our mission of making heart recovery the global standard of care.”