A new deal with German tech leader Siemens subsidiary Siemens Healthineers AG has the Corindus Vascular Robotics company (NYSE: CVRS) stock doubling its price and spiking to all-time highs over four dollars per share in pre-market trading.
Corindus makes gear for “robotic assisted vascular interventions” in the field of “percutaneous coronary and vascular procedures.” It’s the first technology of its kind to be cleared by the FDA and represents significant potential in advancing this area of the medical industry.
In innovating the use of robotics in healthcare, the company has developed a second generation technology that improves clinical workflows and capabilities.
Under the merger agreement, Siemens would pay $4.28 for each share of Corindus stock for a total price of over $1.1 billion.
In a press statement revealing the merger, President of Advanced Therapies at Siemens Healthineers Michel Therin praised the potential of the buyout for advancing clinical goals.
“The integration of our technologies could lead to reduced variability, improved efficiency, expanded access to care, and ultimately improved patient outcomes. We look forward to welcoming the Corindus team to Siemens Healthineers,” Therin said.
“We believe the transaction will deliver immediate, compelling and certain value to all Corindus stockholders, as well as substantial benefits to our customers,” added Mark J. Toland, President and Chief Executive Officer of Corindus. “The combination of Siemens Healthineers’ advanced, high-quality imaging, digital and artificial intelligence tools with Corindus’ precision robotics platform has the potential to transform the way healthcare is delivered to those suffering from cardiovascular or peripheral disease. The tremendous technology synergies and shared vision between both companies should allow us to achieve a seamless integration between our businesses.”
Siemens Healthineers AG recently reported revenue of E13.4 billion for fiscal 2018.