Benzinga | Sep 8, 2021 03:50PM EDT

Why ICU Medical Shares Surged Today

ICU Medical (NASDAQ:ICUI) shares are trading higher after the company announced it will acquire Smiths Medical division from Smiths Group PLC for $2.35 billion in cash and stock.

The Smiths Medical business includes syringe and ambulatory infusion devices, vascular access, and vital care products.

Under the terms of the agreement, Smiths will receive at closing 2.5 million newly issued shares of ICU Medical common stock, currently valued at approximately $500 million, and $1.85 billion in cash along with ICU Medical assuming certain liabilities.

At the time of publication, ICU Medical shares were trading 26.2% higher at $259.96.