Stryker signed an agreement to acquire a provider of clinical communication and workflow solutions for the health care industry in a deal valued at over $3 billion.
The Kalamazoo-based medical device and technology company Stryker (NYSE: SYK) said Thursday, Jan. 6, it signed a definitive agreement to acquire all the issued and outstanding shares of common stock of Vocera Communications (NYSE: VCRA) for $79.25 per share, or a total equity value of approximately $2.97 billion and a total enterprise value of approximately $3.09 billion, including convertible notes.
Founded in 2000, Vocera is a provider of digital care coordination and communication hardware and software for the health care industry, a segment that has continued to expand throughout the pandemic in an effort to reduce cognitive overload for caregivers and enable them to deliver the best patient care possible.
Stryker said Vocera brings a “highly complementary and innovative portfolio” to Stryker’s medical division that will address the increasing need for hospitals to connect caregivers and disparate data-generating medical devices, which will help drive efficiencies and improve safety and outcomes. Additionally, Vocera’s software competency, hardware solutions, and its ability to securely enable remote communication between patients and their families complements Stryker’s advanced digital health care offerings, the company said.
The combined business will advance Stryker’s focus on preventing adverse events throughout the continuum of care, the company said.
“This acquisition underscores our commitment and focus on our customer,” said Kevin Lobo, chair and CEO of Stryker. “Vocera will help Stryker significantly accelerate our digital aspirations to improve the lives of caregivers and patients.”
Brent Lang, chair and CEO of Vocera, said the deal represents an “exciting opportunity for Vocera, given the clear alignment of mission, goals and culture between our two organizations and our ability to drive even greater economic and clinical value for our customers.”
Under the terms of the agreement, Stryker will commence a tender offer for all outstanding shares of common stock of Vocera for $79.25 per share in cash. The boards of directors of both Stryker and Vocera unanimously approved the transaction. The closing of the transaction is subject to expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, completion of the tender offer and other customary closing conditions.
The acquisition is expected to close in the first quarter of 2022 and is expected to have a neutral impact to net earnings per diluted share in 2022.