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Abiomed stock surges, after J&J agreement!

Shares in Abiomed jumped by half after Johnson & Johnson announcement!

J&J announced that it would buy the heart, lung and kidney treatment company in a deal with an initial enterprise value over $16 billion.

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J&J acquired Abiomed for 16$Billion

Abiomed shares surged to more than $379 a share, just below J&J’s $380 a share offer price. The offer also includes something called non-tradable contingent value rights, which could be worth up to $35 a share depending on how Abiomed’s business performs while under the J&J umbrella. J&J shares ticked down 0.5%.

Johnson & Johnson (NYSE: JNJ), the world’s largest, most diversified healthcare products company, and Abiomed (NASDAQ: ABMD), a world leader in breakthrough heart, lung and kidney support technologies, today announced that they have entered into a definitive agreement under which Johnson & Johnson will acquire through a tender offer all outstanding shares of Abiomed, for an upfront payment of $380.00 per share in cash, corresponding to an enterprise value of approximately $16.6 billion which includes cash acquired

*Among Abiomed’s biggest shareholders is Scottish fund manager Baillie Gifford, which focuses on high growth companies. As of the end of September, Baillie held a nearly 8% stake, according to FactSet.


Image:Abiomed J&J