The Medical company St. Jude (STJ) on Monday made an announcement of its plans of acquiring AGA Medical. The acquiring amount, as disclosed by the company, is $1.3 billion that also includes debt. Per share the acquiring value comes to $20.80. The quoted price of STJ represents premium of 41 percent to AGAM’s Friday closing price.
Plymouth, Minn, based AGAM is known for its medical devices of repairing defects in the heart structure and also for positions leading to touts in various niches. It also owns four trial clinicals that is under way of linking to certain defects in the heart, migraine or strokes.
On the other side, the St. Jude has products such as the cardiac devices and it is also giving more importance on the heart treatment issues.
This acquisition of STJ will be providing the physicians a comprehensive offering in treating the defects in structural heart.
The main sales of AGAM is in the international market and mostly in Europe. This will be a great help to St. Jude in carrying its salesforce to new-geographies and also to strengthen the ability of competing with large rivals in the U.S.
The bid of St. Jude is supported by the co-founder of AGA, Franck Gougeon, who holds 19 percent of stake of the company. It is also being supported by Anderson & Stowe, the private investment firm, that holds 44 percent of AGA shares.
