J&J Agrees to Buy Heart-Device Maker Abiomed for $16.6 Billion

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J&J Agrees to Buy Heart-Device Maker Abiomed for $16.6 Billion
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J&J has agreed to buy heart-device maker Abiomed in a all-cash deal valued at up to $16.6 billion, including cash.

Johnson & Johnson agreed to buy heart-device maker Abiomed Inc. in a $16.6 billion deal that the health-products giant hopes will accelerate its overhaul into a leaner, faster-growing company.

Under the terms, J&J agreed to pay $380 a share upfront, and would pay an additional $35 a share if certain milestones are met. Abiomed shares, which closed at $252.08 Monday, rose 50% to $378.80 on the deal news Tuesday afternoon.

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