Shares of Conceptus (NASDAQ:CPTS) surged almost 20% in Monday morning trading after Bayer AG (PINK:BAYRY) said it would buy the birth control products maker.
The German pharmaceutical giant is offering $31 a share for Conceptus, valuing the acquisition at $1.1 billion, the Associated Press noted.
Not surprisingly, Conceptus shares jumped to just under $31 a share. The California-based company produces a permanent contraceptive treatment under the brand name Essure. The treatment uses metal and polyester bands to constrict a woman’s fallopian tubes, preventing pregnancy.
Regulators will have to approve the deal.
The purchase would add to Bayer’s existing range of contraceptive products. Conceptus has a workforce of roughly 300. The companies expect to finalize the merger later this year.
In November, Bayer acquired Utah-based vitamin producer Schiff Nutrition International for $1.1 billion.
Shares of Bayer rose fractionally in over-the-counter trading on Monday.