soared nearly 35% after an affiliate of Germany-based
agreed to buy it for roughly $361 million.
Medrad, a Pennsylvania-based company that develops injection systems for diagnosing cardiovascular and other diseases, will pay $19.50 a share in cash for Minneapolis-based Possis, a purveyor of treatments for narrowed or blocked arteries and veins. That's a 35.9% premium to the stock's closing price on Friday and, according to the companies, about 39% higher than Possis' 30-day average closing price prior to Friday.
Possis CEO Robert Dutcher said the companies' "shared history of innovation bodes well for product development beyond our core businesses, and provides tremendous opportunity for growth."
The companies also cited their "highly compatible sales organizations and shared target customer groups" in their buoyancy on the combination, predicting that the merged company will establish "a leading and expansive footprint in the the cardiovascular intervention field" as it offers "a broader, more comprehensive suite of products."
The merger is expected to close within the current quarter, assuming that at least two-thirds of Possis' shares outstanding are tendered in an offer that's slated to begin within the next 10 business days. Also required are the usual regulatory clearances.
Shares of Possis were surging $4.97 in recent trading to $19.32, well above their 52-week high of $17.39.