Medical Co. Strikes $3B Deal to Buy Digital Care Firm

Source: Streetwise Reports   01/06/2022

Shares of Vocera Communications Inc. traded nearly 27% higher after the company reported it entered into a definitive agreement to be acquired by Stryker Corp. for $79.25 per share in cash.

Collaborative healthcare platform company Vocera Communications Inc. (VCRA:NYE), which offers digital care coordination and communication solutions that enable medical services providers to deliver the best patient care possible, today announced that it entered into a definitive merger agreement to be acquired by Stryker Corporation (SYK:NYSE) for $79.25 per share in cash for a total equity value of approximately $2.97 billion.

Under the terms of the agreement, Stryker will acquire 100% of Vocera’s issued and outstanding common shares resulting in a total enterprise value for Vocera of around $3.09 billion.

Vocera Communications is a leading digital care coordination and communication platform operator that has continued to develop and expand tools that serve to reduce cognitive overload for caregivers, which has allowed them to offer patients humanized medical care throughout the pandemic.

Stryker Medical division is expected to benefit greatly from Vocera’s complementary portfolio that helps hospitals connect with caregivers and remote data-generating medical devices improving efficiency, safety, and patient outcomes and preventing adverse events.

Stryker’s Chair and CEO Kevin Lobo commented, “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.”

Vocera Communications’ Chairman and CEO Brent Lang added, “Today’s milestone represents an exciting opportunity for Vocera given the clear alignment of mission, goals, and culture between our two organizations and our ability to drive even greater economic and clinical value for our customers.”

“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.”

—Stryker Chair and CEO Kevin Lobo

The report indicated that both companies’ respective Board of Directors have already unanimously approved the transaction. The acquisition is expected to close in Q1/22, subject to shareholder approval, ordinary closing conditions and regulatory waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

With a market capitalization of over $103 billion, Stryker, which is headquartered in Kalamazoo, Mich., is one of the world’s largest medical technology companies. The company designs medical products in numerous categories including surgical, neurotechnology, and spine and orthopedics.

Vocera Communications is a leading communication and workflow optimization platform provider based in San Jose, Calif. The firm’s platform connects healthcare professionals, patients, and families with the goal of increasing operational efficiency, enhancing care and safety, and greater humanizing of the healthcare experience. The company’s solutions platform is used by over 2,300 facilities worldwide, including about 1,900 hospitals and other healthcare operations. Mobile workers can use either a smartphone or a wearable hands-free communication device to easily connect with coworkers or to access electronic monitoring devices and health records across the network.

Vocera started off the day with a market cap of around $2.2 billion with approximately 34.8 million shares outstanding and a short interest of about 10.6%. VCRA shares opened more than 26% higher today at $79.07 (+$16.55, +26.47%) over yesterday’s $62.52 closing price and reached a new 52-week high price this morning of $79.43. The stock has traded today between $79.00 and $79.43 per share and is currently trading at $79.16 (+$16.6, +26.62%).

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