Why Natus Medical Stock Surged Today

What happened

Shares of Natus Medical (NASDAQ:NTUS) jumped 28.6% on Monday after the healthcare device maker struck a deal to be acquired by an affiliate of investment firm ArchiMed.

So what

The deal values Natus at roughly $1.2 billion. If completed, shareowners would receive $33.50 in cash for each Natus share they own. That's 29% above the stock's closing price on Thursday.

Natus chairman Joshua Levine said in a press release, "The sale of Natus to ArchiMed will provide our shareholders with immediate and substantial cash value, as well as a compelling premium, and the board has unanimously agreed that this transaction is in the best interests of our shareholders."

Image source: Getty Images.

The transaction is projected to close in the third quarter, subject to regulatory and shareholder approval. However, the deal gives Natus the option to solicit bids from other potential acquirers until as late as May 22. Natus plans to keep negotiations with other suitors confidential unless it receives a better offer than ArchiMed's.

Now what

Natus specializes in medical devices and software that diagnose and treat the brain and nervous system. Demand for its tools is rising, with the global neurodiagnostics market forecast to nearly double to $12.9 billion by 2030, according to Allied Market Research.

CEO Thomas Sullivan said the company's commitment to advancing patient care in its key markets would remain firm under ArchiMed's umbrella. "ArchiMed's mix of operational, medical, scientific, and financial expertise will help us continue our mission to serve our customers," Sullivan said.

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Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns and recommends Natus Medical. The Motley Fool has a disclosure policy.