German dialysis provider Fresenius Medical Care (FMS - Free Report) announced that it will acquire U.S. home dialysis device maker NxStage Medical, Inc. (NXTM - Free Report) for $2 billion. In reaction to this news, shares of NxStage skyrocketed 28% in morning trading on Monday.
Fresenius Medical Care will acquire all outstanding shares of NxStage for $30.00 per share, in cash. The merger has already been approved by NxStage’s board.
The German company is the world’s largest provider of products and services for individuals with renal diseases. It currently operates 3,690 dialysis clinics globally for 315,305 patients. The merger will allow Fresenius Medical Care to strengthen its vertically integrated business.
“The acquisition supports our 2020 strategic initiative of driving growth in the core business with innovation, better clinical outcomes through Care Condition and improving the patient experience,” said Rice Powell, Chairman and CEO of Fresenius Medical Care.
“The combination of Fresenius Medical Care’s industry leadership with NxStage’s innovative products and employees has the potential to significantly advance the standard of care for patients around the world,” said Jeff Burbank, Founder and CEO of NxStage.
“Fresenius Medical Care would like us to continue doing what we do best, and a lot more of it,” said Burbank. “I strongly believe our opportunities would be greater working together for the benefit of patients, customers and shareholders.”
The merger is subject to approval by NxStage stockholders and other regulatory approvals. Fresenius Medical Care expects the deal to close in 2018.
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