Medtronic

(Medtronic)

Medtronic to Buy HeartWare International for $1.1 bln

Markets Reuters

Medtronic Plc said it would buy HeartWare International Inc for about $1.1 billion, bulking up its portfolio of devices aimed at treating heart diseases.

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The $58-per-share cash offer represents a premium of 93.5 percent to HeartWare's Friday close of $29.98.

HeartWare's shares jumped to $57.3 in premarket trading on Monday, while Medtronic's shares were down 2.4 percent.

HeartWare's flagship product, the HVAD System, is placed in the body through a less-invasive surgical procedure and assists with blood flow when the heart is unable to pump blood efficiently.

Medtronic has been investing in medical technology companies that make less-invasive surgical devices.

Last month, Medtronic bought a stake in Mazor Robotics Ltd , a tiny Israeli robotics company, and acquired Smith & Nephew Plc's gynecology unit.

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The HeartWare acquisition is expected to close during Medtronic's second fiscal quarter ending Oct. 28.

Medtronic's financial adviser for the transaction was J.P. Morgan Securities LLC. Ropes & Gray LLP was the legal counsel.

HeartWare was advised by Perella Weinberg Partners LP, with Shearman & Sterling LLP acting as legal adviser. (Reporting by Amrutha Penumudi in Bengaluru; Editing by Shounak Dasgupta and Saumyadeb Chakrabarty)

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