Medical device and equipment manufacturer Stryker Corp. will pay about $120 million to acquire Patient Safety Technologies Inc., which sells the bar code-enabled SurgiCount Safety-Sponge System to keep track of towels and sponges used in operations.
The cash transaction values Patient Safety Technologies stock at $2.22 per share. The stock closed on Dec. 30 at $1.48 on the Over-the-Counter Bulletin Board and then closed at $2.20 on Dec. 31 after the deal was announced in the morning. Still, numerous shareholder rights law firms are investigating if the price is too low and soliciting stockholders for a possible law suit. One law firm, San Diego-based Johnson & Weaver LLP, argues the stock traded as high as $2.36 in July 2013 and that an analyst gave it a target price of $2.50.
Patient Safety Technologies CEO Brian Stewart in a statement said the acquisition price delivers significant shareholder value and that Stryker is an established medical device leader that can drive higher growth. The companies expect the acquisition to close in the first quarter.
Register or login for access to this item and much more
All Health Data Management content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access