Stryker signs $4.9bn deal to acquire Inari Medical to expand peripheral vascular portfolio

Stryker Corporation (NYSE: SYK), a global innovator in medical technologies, has announced a definitive agreement to acquire Inari Medical, Inc. (NASDAQ: NARI) for $80 per share in cash. The transaction, valued at approximately $4.9 billion, represents a major strategic move for Stryker as it seeks to solidify its leadership in the rapidly growing peripheral vascular space.

This acquisition is expected to boost Stryker’s presence in treating venous thromboembolism (VTE), a life-threatening condition affecting nearly 900,000 individuals annually in the United States and millions worldwide. By incorporating Inari Medical’s advanced thrombectomy solutions into its Neurovascular business, Stryker is positioning itself to deliver innovative, life-saving treatments with global reach.

Inari Medical: Innovating the Fight Against VTE

Inari Medical, founded in 2011, has developed a suite of groundbreaking mechanical thrombectomy solutions designed to treat conditions such as deep vein thrombosis and pulmonary embolism. Unlike traditional therapies that rely on thrombolytic drugs, Inari’s devices remove blood clots mechanically, reducing the risk of bleeding and avoiding the need for prolonged medication regimens.

VTE is a significant public health issue, with risk factors ranging from hospitalisation and cancer treatment to pregnancy. By addressing these challenges with purpose-built tools, Inari has established itself as a leader in peripheral vascular care, a reputation that will now bolster Stryker’s comprehensive portfolio.

Drew Hykes, Chief Executive Officer of Inari Medical, expressed optimism about the partnership, noting that Stryker’s global infrastructure and capabilities would accelerate innovation and expand the reach of Inari’s solutions.

Strategic and Financial Implications of the Deal

Under the terms of the agreement, Stryker will initiate a tender offer for all outstanding shares of Inari Medical at $80 per share. Following the successful completion of the tender offer, a second-step merger will be executed to acquire any remaining shares at the same price.

The deal, unanimously approved by the boards of both companies, is subject to standard regulatory approvals, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act. Completion is anticipated by the end of the first quarter of 2025.

Stryker’s leadership emphasised the strategic alignment of this acquisition with the company’s broader mission. Kevin Lobo, Chair and Chief Executive Officer of Stryker, highlighted the importance of elevating care standards for VTE patients through advanced endovascular procedures. He also underscored the significance of integrating Inari’s complementary solutions to accelerate the company’s impact in the peripheral vascular market.

Industry Context and Future Outlook

The acquisition comes amid growing demand for minimally invasive medical solutions in the peripheral vascular space, driven by advancements in technology and a rising prevalence of vascular diseases. Stryker’s move positions it to compete more aggressively with other healthcare leaders addressing these challenges.

The company’s MedSurg, Neurotechnology, Orthopaedics, and Spine divisions have historically focused on improving patient outcomes through innovation, and this latest acquisition reinforces that commitment. By combining Inari’s thrombectomy expertise with its existing capabilities, Stryker aims to redefine treatment paradigms for peripheral vascular diseases.

Financial analysts expect Stryker to discuss the impact of the acquisition during its fourth-quarter 2024 earnings call, scheduled for January 28, 2025. This transparency is likely to reassure investors about the deal’s long-term potential and its anticipated contributions to Stryker’s 2025 financial performance.