LONDON (ShareCast) - (Sharecast News) - Shares of Wright Medical surged on Monday after the medical device company agreed to be bought by larger rival Stryker for $4bn.
Under the terms of the deal, which is expected to close in the second half of next year, Stryker will pay $30.75 per share in cash for Wright Medical.

Stryker's chairman and chief executive officer Kevin Lobo said: "This acquisition enhances our global market position in trauma & extremities, providing significant opportunities to advance innovation, improve outcomes and reach more patients. Wright Medical has built a successful business, and we look forward to welcoming their team to Stryker."

Founded in 1950, Wright Medical is a global medical device company focused on extremities and biologics.

The group's chief executive officer and president, Robert Palmisano, said: "We believe this transaction will provide truly unique opportunities and will create significant value for our shareholders, customers and employees.

"By merging our complementary strengths and collective resources, we will be able to advance our broad platform of extremities and biologics technologies with one of the world's leading medical technology companies that shares our vision of delivering breakthrough and innovative solutions to improve patient outcomes."

At 1315 GMT, Wright Medical shares were up 31% in pre-market trade to $28.92, while Stryker shares were 1.3% lower at $209.97.

RBC Capital Markets said: "The valuation appears full, and we do not expect another bidder to emerge."

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