Medical device manufacturer BD plans to acquire CareFusion for $12.2 billion.
Here are five things to know about the agreement:
1. BD will purchase CareFusion for $58 per share in cash and stock to create a global leader in medication management and patient safety solutions. The global medication management industry is $20 billion.
2. Both companies' boards unanimously approved the transaction.
3. The two companies have complementary product portfolios for integrated medication management solutions and smart devices.
4. Under the terms of the agreement, CareFusion shareholders will receive $49 in cash and 0.0777 of BD shares for each CareFusion share, based on BD's closing price as of Oct. 3.
5. The transaction is still subject to regulatory approval and CareFusion shareholder approvals and customary closing conditions.
6. The companies expect to close the deal in the first half of 2015.
7. Post-transaction, BD shareholders will own around 92 percent of the combined company and CareFusion shareholders will own around 8 percent.
8. BD Chairman and CEO Vincent A. Forlenza expects the transaction to bring CareFusoin products to more healthcare workers around the world and create meaningful value for the company's shareholders. CareFusion's shareholders could also reap benefits.
"The transaction delivers attractive value for CareFusion shareholders, and represents a powerful endorsement of our strong position in medication management, informatics across our device platforms and leading products to help improve the effectiveness of acute-care procedures," said CareFusion Chairman and CEO Kieran T. Gallahue.