Vocera Communications up 25% after entering a definitive agreement with Stryker

Vocera Communications Inc. (NYSE: VCRA) went up by 25% after it was announced that it was entering a definitive merger agreement with Stryker (NYSE: SYK) whereby Stryker would acquire its outstanding common stock shares for $79.25 per share. As a result, the total equity value will come to roughly $2.97 billion.

Founded in 2000, Vocera Communications Inc has slowly become one of the top platforms in the digital communication and care coordination space. The importance of this particular space has continued to grow throughout the global pandemic and has enabled the company to provide the highest-quality patient care. 

About the company

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Vocera Communications gives Stryker access to a highly innovative and complementary portfolio that’ll allow it to address the growing need healthcare facilities have for disparate data-generating medical systems and connect with caregivers. 

This initiative will help improve safety and drive efficiencies. 

Vocera Communication’s highly developed software capabilities, innovative and unique hardware options, and its ability to safely and securely allow for remote communication between families and patients will complement the Advanced Digital Healthcare offerings in Stryker’s portfolio. 

The coming together of these two entities will further improve Stryker’s concentration on preventing severe events and scenarios throughout the continuum of patient care. 

What does top management say?

Stryker’s Chief Executive Officer and Chair, Kevin Lobo, claims the acquisition of Vocera underscores their focus and commitment to their customers. In addition, he claims that Vocera will help them significantly boost their digital aspirations to better the lives of both patients and caregivers. 

Vocera Communication’s Chief Executive Officer and Chairman, Brent Lang, said:

Today’s milestone represents an exciting opportunity for Vocera given the clear alignment of mission, goals and culture between our two organizations and our ability to drive even greater economic and clinical value for our customers.

Details of agreement

According to the definitive merger agreement, Stryker will get Vocera’s outstanding common stock shares for $79.25 per share. Both Vocera and Stryker’s board unanimously approved the transaction of directors. They expect to complete the transaction by the end of Q1 2022. 

The close is subject to the termination or expiration of the suitable waiting period according to the Hart-Scott-Rodino Antitrust Improvements Act.