Stryker Corp (NYSE:SYK) is reported to have made a formal takeover offer for its rival Boston Scientific Corp (NYSE:BSX) as it looks to establish itself as one of the biggest players in the medical device sector, per a report in the Wall Street Journal.
Given that Stryker’s market cap is US$63.45bn and Boston Scientific’s is US$47.36bn, by combining forces, the combined companies would dominate the medical device market and offer everything from endoscopes and heart-valves to knee and hip replacements. Its yearly sales would amount to over US$20bn based on 2017 results.
It would also join together Boston Scientific’s specialty in devices that monitor heart activity and cardiac deviations and Stryker’s dominance in orthopedics, knee and hip replacement parts and spinal cord stimulators and braces, according to the Journal.
A deal between the two companies would enable them to compete against Medtronic, another medical device giant, which has a market cap of $118.06bn.
It isn't immediately evident whether Boston Scientific is receptive to a takeover as the company declined to comment about the deal to the Journal.
In the first quarter, Boston Scientific generated sales of US$2.38bn while Stryker’s net sales came to US$3.2bn.
In pre-market trade, shares in Boston Scientific were flat at US$34.55 as were Stryker's, which held steady at $169.78.