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Shares of Wright Medical (WMGI) blasted off Monday after the joint implant maker unveiled $5.4 billion a deal to be acquired by medical device industry giant and larger rival Stryker Corp (SYK) .

Wright's stock price leaped 29.42% to $28.48 after the Amsterdam-based maker of joint implants announced plans to sell to Stryker for $4 billion in cash and another $1.4 billion in debt.

Under terms of the deal, which have been approved by both companies' boards, Stryker will pay $30.75 a share for Wright Medical, which represents roughly a 40% premium over its last closing price on Friday.

"We believe this transaction will provide truly unique opportunities and will create significant value for our shareholders, customers and employees," said Robert Palmisano, president and chief executive officer of Wright, in a press statement. "By merging ... we will be able to advance our broad platform of extremities and biologics technologies with one of the world's leading medical technology companies."

The acquisition price represents an even more significant premium if the results of Friday's trading, when shares of Wright surged on news of a potential sale, are excluded, the companies said in their press statement outlining the deal.

Stryker's agreement to buy Wright for $30.75 a share represents a 52% premium over "the volume-weighted average closing price of Wright ordinary shares" for the 30 days prior to Oct. 31, or the last day before news of the sale broke.

Stryker's deal for Wright comes as the big medical device maker looks to expand its offerings for upper joint implants, while strengthening its portfolio of implants for lower body joints.

Wright's sales are now approaching $1 billion, with the joint implant maker specializing in shoulders, elbows, wrists and hands in the upper extremities as well as foot and ankle implants in the lower body. 

Through the acquisition, Stryker will augment and expand its "trauma and extremities business" with Wright's "highly complementary product portfolio and customer base," the companies said in a press statement.

Stryker's (SYK) stock price fell 3.55% to $205.22 a share.

"This acquisition enhances our global market position in trauma & extremities," said Kevin Lobo, chairman and chief executive officer of Stryker, "while providing significant opportunities to advance innovation."