St. Jude Medical
agreed to buy
for $61.25 a share, or $1.3 billion, in cash.
The deal gives shareholders of Plano, Texas-based Advanced Neuro a 30% premium to Friday's closing price. St. Paul, Minn.-based St. Jude will tender for Advanced Neuro shares by Oct. 25. St. Jude Medical expects the transaction to close by the end of the year.
ANS is a technology leader in the estimated $1 billion neuromodulation medical-device market and holds a strong No. 2 market-share position in the spinal-cord stimulation segment. Neuromodulation is the delivery of very small, precise doses of electricity or drugs directly to nerve sites and is aimed at treating patients suffering from chronic pain or other disabling nervous-system disorders.
"This is a compelling strategic opportunity for St. Jude Medical and is consistent with our efforts to create additional long-term growth drivers that diversify our business mix and deliver value to our shareholders while benefiting patients and physicians around the world," said St. Jude chief Daniel J. Starks. "We have long respected the ANS team and what they have accomplished. The ANS culture and dedication to improving the quality of lives for patients are aligned with our own. We welcome ANS' employees to St. Jude Medical and expect them to be an important part of our continued success."
On Friday, St. Jude rose 71 cents to $45.76, while Advanced Neuro rose $1.38 to $46.98.