HeartWare stock soared more than 92 percent Monday on news that the company will be acquired by Medtronic in a transaction valued at about $1.1 billion.
Medtronic will make a tender offer for all outstanding shares of HeartWare common stock for $58 per share, in cash, according to a Medtronic release. HeartWare's stock closed Friday trading at $29.98 per share.
"The addition of HeartWare's innovative portfolio adds to our expanding portfolio of diagnostics, therapeutics and services that address heart failure patients," Mike Coyle, executive vice president at Medtronic, said in the release. "This transaction, once closed, will be a further, important step toward Medtronic offering a complete suite of solutions to address patient needs across the heart failure care continuum."
Medtronic, a medical technology company, wrote in the release that the acquisition will expand its portfolio of tools and services for patients with heart failure. Both companies' boards unanimously approved the deal, and the acquisition is expected to close during Medtronic's second fiscal quarter ending Oct. 28, according to the release.
CNBC's Jim Cramer cheered the deal Monday. "They did the inversion, so this is just a home run for them," he said, referring to Medtronic moving its corporate headquarters from the U.S. to Ireland in 2015.
"Medtronic has used the inversion to create a powerhouse that is unassailable," Cramer said.
Medtronic's stock was down about 1 percent on the news.
HeartWare in 2016