St. Jude Medical to Acquire Competitor

St. Jude Medical (STJ), one of our Buy List stocks, is buying Advanced Neuromodulation Systems or ANS (ANSI) for $1.3 billion in cash. I think this is a great move; ANS is an outstanding company. I’d put it on the Buy List if we didn’t already have St. Jude. Also, I love the “all cash” part. Stock-for-stock deals make me a little nervous. St. Jude is paying a 30% premium. This is their counter move to J&J (JNJ) gobbling up Guidant (GDT). St. Jude said it expects revenue growth of more than 20% next year as a result of the deal.

Posted by on October 16th, 2005 at 9:29 pm


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