NEW YORK (TheStreet) -- Shares of HeartWare Int'l (HTWR) are surging 91.86% to $57.52 on heavy trading volume Monday morning after the company agreed to be acquired by medical device maker Medtronic (MDT) for about $1.1 billion.
Medtronic will pay $58 per share in cash for the Framingham, MA-based medical device company, which is a premium of 93.5% to HeartWare's Friday closing price of $29.98.
"It's just a home run for them," TheStreet's Jim Cramer said of Medtronic on CNBC's "Squawk on the Street" this morning.
The acquisition will expand Medtronic's portfolio of diagnostic tools, therapies and services for patients with heart failure, according to a statement.
The transaction is expected to close during Medtronic's second quarter ending October 28 and is subject to customary closing conditions.
"Combining the unique capabilities of the HeartWare team, which has been entirely focused on mechanical support technologies, with the broad strength of the Medtronic organization provides a unique opportunity to enhance growth in the mechanical circulatory support market," HeartWare CEO Doug Godshall stated.
About 4.44 million of HeartWare's shares were traded so far today compared to its average volume of 240,119 shares per day.
Shares of Medtronic are sliding 2.08% to $81.53 on Monday morning.
Separately, TheStreet Ratings Team has a "Sell" rating with a score of D on HeartWare stock.
The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: HTWR