CAS Medical Surges As Edwards Lifesciences Agrees To Buy Medtech Company In $100M Deal

CAS Medical Systems Inc CASM shares are rising by one-half of their value Tuesday after Edwards Lifesciences Corp EW, a manufacturer of heart valves and other medical devices, announced an agreement to buy the company.

What Happened 

CAS Medical is a medical tech company that focuses on non-invasive monitoring of tissue oxygenation in the brain.

Edwards will buy CAS Medical in an all-cash transaction for $2.45 per share, or an equity value of about $100 million, according to the terms of the deal.

The per-share value represents a 56-percent premium over the $1.57 at which CAS Medical shares closed Monday.

Why It's Important 

"We believe the incorporation of CASMED's FORE-SIGHT technology into Edwards' leading hemodynamic monitoring platform, along with Edwards' predictive analytics capability, will strengthen Edwards' leadership in smart monitoring technologies by providing physicians with a more comprehensive status of their surgical and critically ill patients," Katie Szyman, Edwards' corporate vice president of critical care, said in a statement. 

The companies expect the transaction to close in the second quarter, subject to the satisfaction of customary closing conditions, including antitrust clearance and approval by CAS Medical shareholders.

What's Next

As a precondition to the deal, all holders of CAS Medical's Series A convertible preferred stock or Series A exchangeable preferred stock will convert their shares into common stock and will be eligible to receive the deal consideration due to common shareholders.

At last check, CAS Medical shares were rallying 54.14 percent to $2.42, their highest levels since mid-August. Edwards shares were also advancing, rising 1.36 percent to $175.66. 

Related Links:

FDA Panel Reviews Johnson & Johnson's Treatment-Resistant Depression Candidate: What To Expect

The Week Ahead In Biotech: Conferences, PDUFA Dates And Clinical Trials