Medtronic To Acquire HeartWare Int'l In $1.1 Bln Deal

(RTTNews) - Medtronic plc. (MDT) said Monday that it agreed to acquire HeartWare International Inc. (HTWR) in a transaction valued at about $1.1 billion.

As per the terms of the agreement, Medtronic will commence a tender offer for all outstanding shares of HeartWare common stock for $58.00 per share, in cash.

The boards of directors of both Medtronic and HeartWare have unanimously approved the transaction. The acquisition is expected to close during Medtronic's second fiscal quarter ending October 28, 2016, subject to the satisfaction of customary closing conditions.

The transaction is expected to meet Medtronic's long-term financial metrics for acquisitions. Medtronic said it does not intend to modify its fiscal year 2017 revenue outlook or earnings per share guidance as a result of this transaction, although it is expected to provide increased confidence in the company's ability to deliver on its fiscal year 2017 revenue growth outlook. In addition, Medtronic expects minimal to no net earnings per share dilution from this transaction for the first two years as the company intends to offset the expected dilutive impact. The acquisition is expected to be earnings accretive in year three.

Medtronic intends to report results from the acquired HeartWare business as part of its Cardiac Rhythm & Heart Failure division within the Cardiac & Vascular Group.

Medtronic said its acquisition of HeartWare will expand Medtronic's portfolio of diagnostic tools, therapies and services for patients suffering from heart failure, aligning with Medtronic's Mission of alleviating pain, restoring health and extending life, and is in line with the Company's strategy to surround the physician with products while focusing on patients and disease states.