J&J to buy Santa Clara-based Shockwave for $13 billion in medical device play

By John Lauerman | Bloomberg

Johnson & Johnson agreed to acquire Shockwave Medical Inc. for about $13.1 billion to bolster its expansion into making medical devices to treat heart disease.

J&J will pay $335 a share in cash for Santa Clara-based Shockwave, the companies said Friday in a statement. The equity value of the deal is about $12.5 billion, or $13.1 billion including enterprise value and cash acquired. The transaction is expected to close by mid-year.

Since moving to separate from its consumer health division, J&J has been building strength in medical technology with acquisitions including Abiomed, a maker of heart-assist devices, and Laminar, which is developing technology to treat atrial fibrillation. Acquiring Shockwave will make the health-care giant a leader in four quickly growing cardiovascular technology categories, according to the statement.

The new addition brings Shockwave’s technology, called intravascular lithotripsy, which uses sound waves to break up calcification in heart vessels and the peripheral circulation. Shockwave says the system is safer than other treatment approaches.

“The deal gives JNJ a new cardiology platform and technology aimed at the cath-lab which has been lacking to some extent vs. peers,” Mizuho’s Jared Holz said in a note to clients.