Johnson & Johnson has reached an agreement to acquire medical device maker Shockwave Medical for approximately $12.5 billion. The move is aimed at strengthening J&J's position in the development of medical devices aimed at treating heart disease.

Shockwave catheterisation therapy, known as intravascular lithotripsy (IVL), is used, often in combination with stents, to treat two heart conditions in which arteries become blocked by calcium deposits. The founders based the technology on lithotripsy, which has been used since the 1980s to remove kidney stones. Shockwave has helped treat 400,000 patients worldwide with its technology and last year generated product sales of $730.2 million.

J&J has a significant amount of cash on hand after deciding last year to spin-off its consumer health products division, Kenvue, which generated $13.2 billion. Its last major acquisition was the takeover of cardiac device maker Abiomed in November 2022 for US$16.6 billion.

Under the terms of the deal, J&J will pay $335 per share in cash, a 17% premium to Shockwave's closing price at the end of March, when the Wall Street Journal reported that J&J was in talks to buy the company.