Fresenius to pay $2B for NxStage Medical

Fresenius Medical Care (NYSE:FMS; ETR:FRE) said today that it agreed to pay $2 billion to acquire NxStage Medical (NSDQ:NXTM) and the home hemodialysis technology it developed. The $30-per-share deal, which is expected to close this year, represents a 29.6% premium on the August 4 closing price of $23.14 for NXTM shares. The stock was up 25.5% to $29.04 today in pre-market trading. FRE shares were down -1.2% to €69.14 apiece today in Frankfurt. Fresenius said it plans to fund the deal with cash and debt and expects Lawrence, Mass.-based NxStage to add to net income and earnings per share within three years of the deal’s close. “The acquisition supports our 2020 strategic initiative of driving growth in the core business with innovation, better clinical outcomes through care coordination and improving the patient experience,” chairman & CEO Rice Powell said in prepared remarks. “Combining our two companies would strengthen and diversify our business in the U.S. and help meet the evolving needs of our patients.” “The combination of Fresenius Medical Care’s industry leadership with NxStage’s innovative products and employees has the potential to significantly advance the standard of care for patients around the world,” added NxSyage founder & CEO Jeff Burbank. “Fresenius Medical Care would like us to continue doing what we do best, and a lot more of it. I strongly believe our opportunities would be greater working ...
Source: Mass Device - Category: Medical Devices Authors: Tags: Dialysis Mergers & Acquisitions Wall Street Beat Fresenius Medical Care NxStage Medical Inc. Source Type: news