By Sam Boughedda
Investing.com — Shares of Vocera Communications Inc (NYSE:VCRA) shot higher Thursday after medical technology company Stryker Corporation (NYSE:SYK) announced a deal to acquire the digital care platform business.
Stryker will pay $79.25 per share in cash, representing an approximately $2.97 billion total equity value.
Vocera provides a key platform in the digital care coordination and communication category. The company currently works with almost 1,900 hospitals, providing a platform for healthcare staff to communicate with co-workers and engage with patients. Stryker pointed to the importance of the segment during the pandemic and its ability to reduce mental workload for caregivers.
Vocera shares are up 26.5% following the announcement, after closing the previous day's session at $62.52. Stryker's stock price has climbed 0.7%.
“This acquisition underscores our commitment and focus on our customer," stated Kevin Lobo, chair and CEO, Stryker. “Vocera will help Stryker significantly accelerate our digital aspirations to improve the lives of caregivers and patients.”
Both boards have approved the deal, and it is expected to be completed in the first quarter of 2022.
Commenting on the deal, BTIG analyst Ryan Zimmerman told said in a research note that it appears Stryker is expanding beyond its core MedTech focus and that the deal for Vocera is a "natural fit."