(Reuters) – Medical device maker Stryker Corp (N:) said on Monday it would buy smaller rival Wright Medical Group (O:) for about $4 billion in cash, to strengthen its upper-body joint implants business.
The deal for $30.75 per share of Wright represents a premium of 39.7% to the company’s close on Friday.
Shares of Wright Medical rose 31% to $28.85 in premarket trading.
Including debt, the deal values Wright at about $5.4 billion and is expected to close in the second half of 2020.
Wright Medical is among the top makers of implants to treat upper-body joint injuries in areas such as the shoulder and wrist as well as lower body including the foot and ankle.
Bloomberg reported on Friday that Wright Medical was working with financial advisers and was exploring a potential sale.
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