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Vocera (VCRA) to be Acquired by Stryker for $79.25 Per Share

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Vocera Communications, Inc. (VCRA - Free Report) has announced a deal under which it will be acquired by Stryker Corporation (SYK - Free Report) for $79.25 per share. The figure represents a total equity value of almost $2.97 billion and an enterprise value of $3.09 billion.

Headquartered in San Jose, CA, Vocera has emerged as a leading platform in the digital care coordination and communication category. The news drove the company’s share price 26.6% higher on Jan 6, closing at $79.17.

Headquartered in Kalamazoo, MI, Stryker operates as a medical technology company. It offers innovative products and services in Orthopaedics, Medical and Surgical, and Neurotechnology and Spine that help improve patient outcomes.

Vocera’s business has expanded significantly throughout the pandemic as it aims to reduce cognitive overload for caregivers and enable them to deliver the best patient care.

Vocera’s shares have gained 82.6% in the past year compared with the industry’s growth of 12.7%.

Zacks Investment ResearchImage Source: Zacks Investment Research

Vocera brings an innovative portfolio to Stryker’s Medical division to address the increasing need for hospitals to connect caregivers and data-generating medical devices.

Vocera’s software competency, hardware solutions and its ability to enable remote communication between patients and their families complement Stryker’s Advanced Digital Healthcare offerings. Vocera will help Stryker accelerate its digital goals to improve the lives of caregivers and patients.

Per the deal, Stryker will float a tender for all outstanding shares of Vocera for $79.25 per share in cash. The boards of directors of both companies have unanimously approved the transaction.

The deal, subject to regulatory approvals, is expected to be closed in the first quarter of 2022. It is likely to have a neutral impact on earnings per share in 2022.

VCRA currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SeaChange International, Inc. (SEAC - Free Report) is another top-ranked stock in the industry, with a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its current-year earnings has been revised upward by 10% over the past 30 days.

SeaChange International has a trailing four-quarter earnings surprise of 37.2%, on average. The stock has returned 12.6% in the past year.

KVH Industries, Inc. (KVHI - Free Report) , carrying a Zacks Rank #2, is also a decent pick for investors. The consensus estimate for current-year earnings has remained stable over the past 30 days.

KVH Industries has a trailing four-quarter earnings surprise of 50%, on average. It has, however, lost 21.1% in the past year.