Zacks
0
All posts from Zacks
Zacks in Our Research. Your Success.,

NxStage (NXTM) Jumps 28% on $2 Billion Acquisition by FMS

German dialysis provider Fresenius Medical Care FMS announced that it will acquire U.S. home dialysis device maker NxStage Medical, Inc. NXTM 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.

5 Trades Could Profit "Big-League" from Trump Policies

If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.

Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Fresenius Medical Care Corporation (FMS): Free Stock Analysis Report
 
NxStage Medical, Inc. (NXTM): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research