Stryker agrees cash acquisition of Inari Medical

Endovascular catheter equipment — Equipment for endovascular procedures

Stryker has agreed to acquire Inari Medical for $80 per share in cash. The proposed transaction is valued at approximately $4.9 billion and would add peripheral vascular devices to Stryker’s medical technology portfolio.

The approximately $4.9 billion figure represents fully diluted equity value. Both companies’ boards unanimously approved the agreement. Inari’s products include mechanical thrombectomy systems for deep vein thrombosis and pulmonary embolism, complementing Stryker’s Neurovascular business. The target’s clot-removal products operate without thrombolytic drugs.

Stryker medical technologies

Planned tender offer and merger

Stryker will begin a tender offer for all outstanding Inari common shares. Following successful completion, a second-step merger would acquire shares not tendered at the same price. The tender offer had not commenced when the agreement was announced. Its completion is subject to:

A tender of at least a majority of then-outstanding Inari common shares.
Expiration or termination of the Hart-Scott-Rodino Antitrust Improvements Act waiting period.
Other customary conditions.

The companies anticipate closing by the end of the first quarter of 2025, subject to customary conditions. Stryker plans to discuss the expected effect on its 2025 financial results during its forthcoming fourth-quarter earnings call. Transaction benefits and timing remain forward-looking expectations.

Orange County coastal foothills — Foothill landscape near Irvine

Inari’s third-quarter financial position

Inari generated $153.4 million of revenue in the quarter ended September 30, 2024, a 21.4% increase from $126.4 million a year earlier. Quarterly gross profit rose to $133.5 million from $111.9 million, while gross margin declined to 87.1% from 88.5%. Operating expenses increased to $147.1 million from $109.8 million.

Operating results and liquidity

The company recorded a quarterly GAAP operating loss of $13.6 million, compared with operating income of $2.1 million in the prior-year quarter. Its non-GAAP operating loss was $0.4 million, against non-GAAP operating income of $4.8 million. The adjusted measure excludes acquisition-related expenses, acquired intangible amortisation, contingent-consideration valuation changes and capitalised software impairment costs.

Inari’s quarterly net loss was $18.4 million, compared with net income of $3.2 million a year earlier. Cash, cash equivalents and short-term investments totalled approximately $112 million at quarter-end.