US-based medical device company St Jude Medical has signed a definitive agreement to acquire heart device maker Thoratec for $3.4bn.
Under the agreement, St Jude Medical will purchase all outstanding shares of Thoratec for $63.5 per share.
Headquartered in California, Thoratec develops mechanical circulatory support technology to treat advanced heart failure (HF) that includes ventricular assist devices that are used for chronic and acute patient support.
St Jude Medical president Daniel Starks said: "Thoratec's strong core business and rich portfolio of new products complement St Jude Medical's innovation-based growth strategy and will benefit patients, customers, employees and shareholders of both companies.
"The addition of Thoratec's leading ventricular assist device portfolio expands and enhances St Jude Medical's established presence in heart failure therapies."
The transaction streamlines St Jude's growth strategy through the addition of products and technologies, including quadripolar cardiac resynchronisation therapy, remote monitoring capabilities and CardioMEMS HF System.
Thoratec president Keith Grossman said: "By combining the capabilities and leading technologies of both companies, we will be able to expand access, reduce costs and advance heart failure therapies on a global basis."
Subject to shareholder approval, regulatory approvals and other customary closing conditions, the transaction is expected to be completed during the fourth quarter of this year.
Thoratec manufactures products such as HeartMate II and HeartMate III left ventricular assist systems (LVAS), as well as Thoratec VAD.
In addition, the company produces CentriMag, PediMag/PediVAS and HeartMate PHP product lines. HeartMate III and HeartMate PHP are investigational devices that are limited by US law to investigational use.