Johnson & Johnson will buy medical device maker Shockwave Medical for about US$12.5 billion, the companies said on Friday (Apr 5), helping the healthcare conglomerate boost its portfolio of medical devices.

The California-based company makes a device which uses shockwaves to break down calcified plaque in heart vessels, similar to how kidney stones are treated.

Under the deal, J&J would pay US$335 per share in cash for the medical device maker. The offer price implies a 4.7% premium to Shockwave’s last close of US$319.99 on Thursday.

Shockwave, a company that makes devices to treat heart disease, has a market capitalisation of about US$12 billion, according to LSEG data. REUTERS