J&J to buy heart medical tech firm Abiomed for $17.3B

Johnson & Johnson, one of the world’s biggest makers of medical devices, said it will purchase Abiomed Inc. for about $17.3 billion, building on its portfolio of technology to assist heart function.

J&J will pay $380 a share in cash, according to a statement Tuesday. That represents a premium of about 50% over Abiomed’s closing price on Monday, and is close to the stock’s 52-week high in November 2021. Abiomed shareholders will also receive as much as $35 a share in additional cash if certain goals are achieved, the companies said.

J&J is planning to spin off its consumer unit next year, and is looking to focus on higher returns from its pharmaceutical and medical technology divisions. Abiomed makes almost all of its money through the sale of Imeplla heart pumps — small devices that are threaded through arteries into the heart to help it move blood through the body.