This deal will have Stryker acquiring Invuity for $7.40 per share. This represents a roughly 28% premium to the closing price of IVTY stock on Monday, Sept. 10, 2018. It also represents a total value of $190 million for the deal.
Stryker notes that it will be using cash to fund its purchase of IVTY stock. The company also points out that it own’t require additional funding, as it can afford the acquisition with cash on hand. A subsidiary of Stryker will be using this cash to make a tender offer for all outstanding shares of IVTY stock.
Stryker says that it will have its subsidiary merging with and into Invuity. The deal will require that the majority of IVTY shares are tendered. Those shares not tendered in the deal will still be exchanged for the $7.40 price if the deal goes through.
The deal already has the backing of Invuity’s Board of Directors. The Board is also recommending that all shareholders take part in this tender offer. It also says that all of the company’s Board members and other executives will be tendering their shares of IVTY stock for the deal.
Stryker and Invuity are expecting to complete the tender offer by the end of the fourth quarter of 2018. However, the deal will also need to complete other customary closing conditions, such as regulatory approval, first
IVTY stock was up 27% and SYK stock was up 1% as of noon Tuesday.
As of this writing, William White did not hold a position in any of the aforementioned securities.