Stryker to Pay $2.97 Billion for Vocera Communications
Kalamazoo, Michigan-based Stryker Corporation has entered into a definitive agreement to acquire Vocera Communications, Inc. for a whopping $2.97 billion, which, if total enterprise value is considered, is closer to $3.1 billion.
Founded in 2000, Vocera is a healthcare communications and workflow solutions company. Its systems are compatible with more than 150 clinical and operational software programs and about 1,900 hospitals and healthcare facilities across the globe utilize Vocera solutions “to enable their workforce to communicate and collaborate with co-workers and engage with patients and families.”
Stryker Chair and Chief Executive Officer Kevin Lobo said, “This acquisition underscores our commitment and focus on our customer. Vocera will help Stryker significantly accelerate our digital aspirations to improve the lives of caregivers and patients.”
Under the terms of the agreement, Stryker is paying $79.25 per share in cash to buy Vocera. Stryker expects the acquisition to close in the first quarter of 2022 and, according to Stryker, is “expected to have a neutral impact to net earnings per diluted share in 2022.”
The boards of directors of both companies unanimously approved the transaction. The closing of the transaction is subject to customary closing conditions, completion of the tender offer, and the expiration or termination of the applicable waiting period.
Needham & Company, LLC analysts, Mike Matson, CFA, David Saxon, CFA, and Joseph Conway sent a note to their clients regarding the acquisition. The note stated in part, “We believe that the VCRA [Vocera] deal enhances SYK's [Stryker] connected care capabilities.”
The note also said, in part, “We believe that VCRA is complementary to SYK's Advanced Digital Healthcare platform within its Medical division. We believe SYK can leverage its domestic and international footprint to cross-sell the VCRA platform.”
Additionally, the analysts highlighted that Stryker’s “steady cadence of acquiring higher-growth businesses should help enable SYK to sustain its above-peer organic growth.”