Courtesy of Benzinga.
Cyberonics, Inc. (NASDAQ: CYBX) shares gained more than 20 percent after the company said it will merge with Italian-based Sorin SpA in a stock-swap valuing the two companies at $2.7 billion.
Cyberonics changed hands recently at $70.03, up $16; Sorin changed was trading up about 32 percent on the Milan stock exchange at EU2.90.
The deal, expected to close by September, will result in a company with annual sales of about $1.3 billion and will be 54 percent owned by current Cyberonics shareholders.
Cyberonics makes implantable medical devices for the treatment of heart failure, epilepsy and depression.
Sorin makes heart valves, pacemakers and equipment for cardiovascular surgery.
Following the merger, the company will be a "global leader" in heart surgery, with opportunities focused on heart failure, sleep apnea and heart valves, the companies said.
Post merger, the company will have "essentially no debt," with a domicile in the U.K. and dual listings on New York and London stock exchanges.
The new company will have a "sound financial base and a larger capitalization that can attract a larger, global investor base," the companies said.
Sorin's Chief Executive Andre-Michel Ballester will head the new company while Cyberonics' CEO Daniel Jeffrey Moore will be chairman.
Separately on Thursday, Cyberonics beat third-quarter earnings expectations by 3.5 percent on revenue in line with Wall Street forecasts.
Cyberonics also said on Wednesday its Vitaria device for treating heart failure was approved by European regulators. The device is unavailable in the U.S.
