ReAble Therapeutics Inc. announced that it has reached an agreement to purchase DJO Inc. for $50.25 per share, or about $1.6 billion in cash including assumed debt.
This price is a 19.4 percent premium to the stock's closing price Friday. The terms of the merger agreement include a 50 day go-shop period for DJO to pursue other offers and an $18.7 million breakup fee that DJO would have to pay ReAble if the merger is not completed.
According to the press release, the merger will close in the fourth quarter of 2007 and the transaction is subject to the approval of DJO's stockholders and regulatory approvals.
Executives at both medical device and services companies stated that they feel the merger will be beneficial for both companies and their customers.
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