April 5 (Reuters) - Johnson & Johnson ( JNJ ) on Friday

agreed to buy Shockwave Medical ( SWAV ) for $12.5 billion, in a

deal that would help broaden its portfolio of medical devices

used in treating heart diseases.

The acquisition gives J&J access to a device that uses

shockwaves to break down calcified plaque in heart vessels,

similar to how kidney stones are treated.

The conglomerate is focusing on building its cardiac

health business and spent $16.6 billion to buy heart pump maker

Abiomed in 2022 and $400 million to buy another heart-centric

device maker Laminar.

The company's spate of deals in recent years to bolster

other parts of its business comes as its blockbuster Crohn's

disease drug, Stelara, faces possible rivals next year.

Shockwave's catheter-based treatment known as

intravascular lithotripsy (IVL) is used, often in combination

with stents, to treat two heart conditions in which arteries get

clogged with calcium deposits.

The deal, which values Shockwave at an enterprise value

of about $13.1 billion, is expected to close by mid-2024, the

companies said. Shockwave posted product sales of $730.2 million

last year.

In early 2023, J&J had said it planned to focus on deals

that would add value to its portfolio of cardiovascular

products, and that many of its future transactions were likely

to be small "tuck-in" acquisitions.

J&J expects to finance the Shockwave deal through a

combination of cash on hand and debt.

J&J has offered $335 per share in cash, or a 17% premium to

the stock's closing price in late March, when the Wall Street

Journal reported that the healthcare conglomerate was in talks

to buy the company. Shockwave shares rose 1.6% to $325.18 in

premarket trading.

(Reporting by Sriparna Roy and Bhanvi Satija in Bengaluru;

Editing by Savio D'Souza and Anil D'Silva)