Johnson & Johnson to buy Shockwave for $13.1 billion using cash, debt

By Devika Patel

Knoxville, Tenn., April 5 – Johnson & Johnson plans to use cash and debt to purchase Shockwave Medical Inc., a Santa Clara, Calif.-based medical device developer.

The company will acquire all outstanding Shockwave shares for $335 per share in cash, corresponding to an enterprise value of approximately $13.1 billion, including cash acquired.

Settlement is slated for midyear 2024.

“Shockwave is a high-performing business in an underpenetrated category with a strong pipeline and attractive growth and margin profiles,” executive vice president and chief financial officer Joseph J. Wolk said on the company’s conference call announcing the acquisition on Friday.

“We expect to fund the transaction through a combination of cash on hand and debt.

“In terms of the structure of the transaction, Johnson & Johnson will acquire all outstanding shares of Shockwave for $335 per share in cash, totaling an enterprise value of approximately $13.1 billion, inclusive of cash acquired through a merger of Shockwave with wholly owned Johnson & Johnson subsidiary.

“As for the timeline, we currently assume the transaction to close by midyear 2024,” he said.

Based in New Brunswick, N.J., Johnson & Johnson is a consumer products company.

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