Vocera Communications To Be Acquired by Stryker for 2.7B
Vocera Communications has agreed to be acquired by medical device manufacturer Stryker Corps for $2.97 billion. Stryker said in a statement that the agreement is expected to close in this year’s first quarter. It is expected to have no impact on net earnings per share in 2022.
With this new deal, Stryker has agreed to pay $79.25 per share for the company, creating a total equity value in the region of $2.97b, and a complete enterprise value of roughly $3.09b, including convertible notes. This acquisition has been unanimously approved by both Stryker and Vocera’s boards.
Both companies will benefit from the merger, according to most analysts.
During the Coronavirus pandemic, William Blair analysts found that Vocera has focused on the need for better communication systems in healthcare facilities, which has led to greater “enterprise-wide” deals and bookings. As a response, the William Blair analysts wrote: “Given this fact, we are not surprised that a strategic partner in the medical technology space would look to add exposure to the communications vertical. The company has also steadily improved its margin profile over the years, which we believe further enhances Vocera’s attractiveness to a strategic buyer, as the company has seen a greater mix of its revenues coming from software sales and recurring software subscriptions.” Among Vocera’s specialties are communication and workflow platforms, along with software for hospitals to improve patient data sharing. These platforms allow for internal and patient-to-doctor communication. As well as smart wearable devices, the company also manufactures smartphone applications for healthcare practitioners.
Kevin Lobo, chair and chief executive of Stryker, had this to say: “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.”
Bret Lang, chairman and chief executive of Vocera, said: “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.”
According to Stryker, Vocera’s “highly complementary and innovative portfolio” of tools can help caregivers and “disparate data-generating medical devices” better connect and monitor patients, helping boost patient safety and outcomes and streamline provider workflows. The software and hardware from Vocera will complement Stryker’s Advanced Digital Healthcare tools, the company says, and will enable it to better help its customers minimise or prevent adverse events across multiple care settings.
This is the latest deal in a large number of prolific multibillion acquisitions regarding health IT. Other notable deals already announced this year so far include the merger of Castlight Health with Vera Whole Health, as well as Republica Analytics also being acquired by Vera Whole Health.
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