Johnson & Johnson announced on April 5 that it will acquire all outstanding shares of Shockwave Medical for $335 per share in cash, corresponding to an enterprise value of approximately $13.1 billion including cash acquired.
Shockwave Medical is a cardiovascular medical device company changing how calcified cardiovascular disease is treated with intravascular lithotripsy (IVL). IVL safely uses sonic pressure waves to disrupt challenging calcified plaque, resulting in significantly improved patient outcomes. Shockwave has also recently acquired the Reducer, which is under clinical investigation in the United States and is CE Marked in Europe. By redistributing blood flow within the heart, the Reducer is designed to provide relief to the millions of patients worldwide suffering from refractory angina.
According to its most recent annual report, Shockwave Medical’s revenue for the FY 2023 was $730.2 million, an increase of $240.5 million, or 49%, compared to FY 2022. The company’s Adjusted EBITDA was $242.7 million for FY 2023, a 40% increase compared to adjusted EBITDA of $173.9 million for FY 2022.
Johnson & Johnson is one of the largest global healthcare and pharmaceutical companies with more than 130,000 employees worldwide. Its business lines include pharmaceuticals, medical devices and consumer healthcare products. According to its most recent financial report, Johnson & Johnson’s revenue for the twelve months ending September 30, 2023 was $99.1 billion, and EBITDA was approximately $25.7 billion.
J.P. Morgan Securities LLC is serving as financial advisor to Johnson & Johnson and Freshfields Bruckhaus Deringer LLP is serving as legal advisor. Perella Weinberg Partners is serving as financial advisor to Shockwave and Fenwick & West LLP is serving as legal advisor. The closing of the transaction is expected to occur by mid-year 2024.
Following completion of the transaction, Shockwave’s common stock will no longer be listed for trading on the Nasdaq Global Select Market. The transaction was approved by both companies’ boards of directors.
According to data captured in the LevinPro HC database, this acquisition marks the 22nd Medical Devices transaction of 2024. There were 110 Medical Devices deals announced during 2023, and 122 during 2022.
