Medical device maker Stryker Corp said on Thursday it would buy Entellus Medical Inc for $662 million, adding heft to its ear, nose, and throat (ENT) business.
Stryker would pay $24 per Entellus share, a premium of about 50 percent to Entellus’s Wednesday close. Entellus shares jumped 53.7 percent to $24.60 in premarket trading.
Plymouth, Minnesota-based Entellus designs minimally invasive products for the treatment of various ENT diseases. The company generated revenue of $23 million in the third quarter.
Entellus’s portfolio of ENT devices like dilation system XprESS and nasal implant Latera would complement its instrument business, Stryker said.
The deal is expected to be dilutive to Stryker’s 2018 adjusted net earnings by about 4 cents per share, but accretive thereafter, the company said.
Guggenheim Securities was financial adviser to Stryker, while Piper Jaffray & Co advised Entellus.
(Reporting by Divya Grover in Bengaluru; Editing by Shounak Dasgupta)