Stryker on Thursday announced its plans for a merger with Vocera Communications, developer of clinical communication and workflow technologies, for approximately $3 billion.

WHY IT MATTERS

The maker of medical and surgical products will spend $79.25 per share for Vocera, for a total equity value of $2.97 billion and a total enterprise value of approximately $3.09 billion, including convertible notes, company officials say.

Stryker officials say they're interested in Vocera's "highly complementary and innovative portfolio" of tools to help connect caregivers and "disparate data-generating medical devices," with an eye toward boosting patient safety and outcomes and improving provider workflows.

Specifically, Vocera's software and hardware for remote communication complements Stryker's Advanced Digital Healthcare tools, the company said, and will improve its efforts to help its customers reduce and prevent adverse events across the care continuum.

The boards of directors of both Stryker and Vocera have unanimously approved the acquisition, which is expected to close, pending regulatory approval, in the first quarter of 2022.

THE LARGER TREND

Just a week into the new year, this is the first multibillion health IT acquisition of 2022 – after a busy 2021 that saw its share of significant M&A activity.

Other deals announced so far this year include Castlight Health's merger with Vera Whole Health and Aetion's acquisition of Replica Analytics.

Rhonda Collins, RN, chief nursing officer at Vocera, recently offered her perspective to Healthcare IT News for a 2022 preview and prediction piece.

She hopes to see renewed efforts to address the major challenges facing the healthcare workforce, which is exhausted as the COVID-19 pandemic drags into its third year.

Hospitals and health systems are grappling with "ongoing labor shortages, increased workplace violence, and many other burdens impacting the safety and wellbeing of pandemic-weary healthcare workers," said Collins.

Technologies that "protect the nurses and facilitate their clinical practice will go a long way to build trust and help retain and recruit these essential workers that we all need now and in the future," she said.

ON THE RECORD

"Vocera will help Stryker significantly accelerate our digital aspirations to improve the lives of caregivers and patients," Kevin Lobo, chair and CEO of Stryker, said in a statement announcing the acquisition.

Vocera Chairman and CEO Brent Lang called the deal "an exciting opportunity for Vocera, given the clear alignment of mission, goals and culture between our two organizations and our ability to drive even greater economic and clinical value for our customers."

Twitter: @MikeMiliardHITN
Email the writer: mike.miliard@himssmedia.com
Healthcare IT News is a HIMSS publication.