St Jude Medical has announced its completion the previously announced acquisition of Thoratec Corporation, a global leader in mechanical circulatory support (MCS) technology for the treatment of advanced heart failure.
The acquisition will add the HeartMate II left ventricular assist device (VAD), in conjunction with the next generation HeartMate 3, HeartMate PHP devices and other complementary products to St Jude Medical’s market heart failure portfolio.
Commenting on the acquisition, St Jude Medical’s chief operating officer, and incoming president and chief executive officer, Michael T Rousseau says: “St Jude Medical is excited to bring together two companies that are considered heart failure therapy leaders and build on our established franchise that is now uniquely positioned to offer physicians and patients innovative solutions across the heart failure continuum. We believe this acquisition represents a tremendous opportunity and we welcome Thoratec’s employees as we look forward to changing the way the world views the treatment of this expensive epidemic disease.”
The transaction is valued at approximately US$3.3 billion, net of cash acquired. Under the terms of the transaction, each share of Thoratec outstanding as of the closing has been converted into the right to receive US$63.50 in cash, without interest. St Jude Medical continues to expect this transaction to be accretive to adjusted earnings per share in 2016.
The closing of the transaction follows the receipt of all necessary regulatory requirements and approval of the transaction by Thoratec shareholders on October 7, 2015. As a result of the completion of the merger, the common stock of Thoratec Corporation will no longer be listed for trading on the NASDAQ Exchange.