Why is Vocera Communications (VCRA) stock climbing today?

Highlights

  • Stryker Corporation will acquire Vocera Communications for US$2.97 billion.

  • The medical technology company will acquire all the shares of Vocera.

  • The Vocera (VCRA) stock gained over 43% over the past 12 months.

Shares of Vocera Communications, Inc. (NYSE: VCRA) were in focus on Wall Street Thursday after the medical device maker Stryker Corporation (NYSE: SYK) announced to acquire all outstanding shares of Vocera common stocks.

The merger agreement was finalized on Wednesday, Jan 6.

The San Jose, California-based company would acquire all the outstanding shares of Vocera for US$79.25 per share, representing a total equity value of US$2.97 billion and an enterprise value of US$3.09 billion, including the convertible notes.

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Vocera provides communication services to mobile workers in the healthcare, energy, and other sectors. Stryker, on the other hand, is a medical technology company based in Kalamazoo, Michigan. It offers medical technology services for orthopedic and surgical needs.

The company was founded in 2000. It is a leading platform in the digital care and communication sector. The company saw strong growth during the pandemic. It aims to reduce the cognitive overload of caregivers to enable them to provide the best patient care.

The acquisition would also help Stryker to advance its goal for patient care.

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Stryker Corporation will acquire Vocera Communications for US$2.97 billion.

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Vocera’s (NYSE: VCRA) stock performance, financials

The Vocera shares were traded at US$79.135 at 10:17 am ET on Jan 6, up 26.58% from its previous close. The stock gained over 43% over the past 12 months.

Its market cap is US$2.75 billion, the forward P/E one year of -694.67, and the EPS is US$-0.24.

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The stock saw the highest price of US$69.27 and the lowest price of US$31.93 in the last 52 weeks. Its trading volume on Jan 5 was 528,012.

The revenue was US$63.6 million in Q3, FY21, an increase of 18% YoY. On a GAAP basis, its net income came in at US$2.1 million, compared to US$4.2 million in Q3, FY20.

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Bottomline

The Stryker (SYK) stock traded flat at US$270.745 at 10:22 am ET on Jan 6. Stryker Chairman and CEO Kevin Lobo said the acquisition reflects the company’s "commitment and focus" towards its customers. “Vocera will help Stryker significantly accelerate our digital aspirations to improve the lives of caregivers and patients,” Lobo added.

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