Stryker continues digital push with $3-billion Vocera deal

Stryker announced on Thursday a definitive agreement to acquire Vocera Communications for $79.25 per share, or a total equity value of around $3 billion, gaining the latter's digital care coordination and communication platform. The deal, which has been approved by the boards of both companies, is expected to close in the first quarter.  

Kevin Lobo, chief executive of Stryker, noted that the acquisition of Vocera, which was established in 2000, will "significantly accelerate our digital aspirations to improve the lives of caregivers and patients."

Clinical communication, workflow solutions

Vocera provides clinical communication and workflow solutions, including the hands-free Smartbadge and other wearable devices with voice commands, to nearly 1900 hospitals and healthcare facilities worldwide. Stryker said that the company's solutions can integrate with more than 150 clinical and operational systems, including electronic health records, nurse call systems, ventilators and physiological monitors.

According to Stryker, Vocera's portfolio complements its medical division and will address the "increasing need for hospitals to connect caregivers and disparate data-generating medical devices," driving efficiencies and improving safety and outcomes. Stryker added that its advanced digital healthcare offerings will be complemented by Vocera's software competency, hardware solutions and the ability to securely enable remote communication between patients and their families.

Commenting on the deal, BTIG analyst Ryan Zimmerman said that "Stryker is expanding beyond its 'core' medtech focus with the acquisition, but the Vocera acquisition is a natural fit," adding that Vocera supports smartphone and wearable devices, software and alarm management. He noted that "it complements Stryker's digital healthcare offerings and further engenders Stryker as a leader in patient safety tools that are used commonly throughout health care." Zimmerman added that Stryker is paying an around 29% premium for Vocera stock. 

For related analysis, see Wider View: With Vocera, Stryker strikes the right note for digital-led growth.

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