- Johnson & Johnson JNJ has agreed to acquire Abiomed Inc ABMD for an upfront payment of $380.00 per share in cash, corresponding to an enterprise value of approximately $16.6 billion.
- Abiomed shareholders will also receive a non-tradeable contingent value right (CVR), entitling the holder to receive up to $35.00 per share in cash if certain commercial and clinical milestones are achieved.
- The transaction broadens Johnson & Johnson MedTech's (JJMT) position in cardiovascular offerings.
- Abiomed offers Impella heart pumps for patients with severe coronary artery disease requiring high-risk PCI (percutaneous coronary intervention), treatment of AMI (acute myocardial infarction), cardiogenic shock, or right heart failure.
- Johnson & Johnson expects the transaction to be slightly dilutive to neutral to adjusted EPS in the first year, and then accretive by approximately $0.05 in 2024, and increasingly accretive after that.
- The transaction is expected to be completed by Q1 of 2023.
- Abiomed reported Q2 sales of $265.92 million, up 11% Y/Y, missing the consensus of $273.53 million.
- The company posted an adjusted EPS of $1.30, 26%, above the consensus of $1.04.
- Price Action: ABMD shares are up 51.2% at $381.07 on the last check Tuesday.
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