Stryker Corporation to Acquire Patient Safety Technologies for $120M (SYK)

Biotech giant Stryker Corporation (SYK) announced on Tuesday that it has signed a definitive agreement to purchase Patient Safety Technologies, Inc. (PSTX) for a total of $120 million.

SYK will acquire PSTX for $2.22 per share, or $120 million. Patient Safety Technologies is a subsidiary of SurgiCount Medical and is the owner of the Safety-Sponge System and SurgiCount 360. These technologies help prevent Retained Foreign Objects (RFOs) in the operating room, which lowers costs and improves patient safety.

The acquisition is subject to customary closing conditions and approval by the shareholders of Patient Safety Technologies. The deal is expected to close in the first quarter of 2014.

Stryker shares were mostly flat during premarket trading Tuesday. The stock is up 37% YTD.