Medtronic To Buy Heartware For In a $1.1 Billion Deal

Shares of Heartware International Inc. were indicated sharply higher in premarket trade Monday, after the developer of miniaturized circulatory support technologies agreed to be acquired by Medtronic PLC in a deal valued at $1.1 billion. As part of the agreement, Medtronic will pay $58 for each Heartware share outstanding, which represents a 93% premium to Friday's closing price of $29.98. The deal is expected to close during Medtronic's fiscal second quarter ending Oct. 28, 2016. Medtronic said it doesn't expect to adjust its fiscal 2017 revenue or earnings-per-share outlooks, but the deal gives the company "increased confidence" in its ability to achieve its revenue growth outlook. Heartware's stock traded up 67% in light premarket volume, while Medtronic's stock was still inactive. Year to date through Friday, Heartware's stock has tumbled 41%, Medtronic shares have gained 8.2% and the S&P 500 has slipped 0.3%.

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