10:53 AM EDT, 06/18/2024 (MT Newswires) -- Shares of Silk Road Medical ( SILK ) jumped on Tuesday after Boston Scientific (BSX) made a $1.16 billion offer to acquire the medical device maker known for a minimally invasive stroke preventative.

Boston Scientific agreed to pay $27.50 per share for Silk Road Medical ( SILK ), a premium of 27% over Silk Road Medical's ( SILK ) closing price on Monday, according to an MT Newswires calculation. Shares of Silk Road Medical ( SILK ) jumped 24% in morning trade.

Silk Road's platform of products help prevent stroke in patients with carotid artery disease through a minimally invasive procedure called transcarotid artery revascularization, or TCAR. While existing treatment options for blocked carotid arteries include stents and surgery, TCAR enables doctors to access the carotid artery through a small less-invasive incision in the neck.

"The TCAR platform developed by Silk Road Medical ( SILK ) is a notable advancement in the field of vascular medicine, which has revolutionized stroke prevention and the treatment of carotid artery disease," said Cat Jennings, Boston Scientific's president of vascular and peripheral interventions.

The TCAR procedure gained US Food and Drug Administration approval in 2015, while the associated products sold by Silk Road Medical ( SILK ) are the only devices commercially available for use during the procedure, according to Boston Scientific.

Silk Road previously guided for revenue to climb between 10% and 12% year-on-year in 2024 to between $194 million and $198 million.

The transaction is expected to close in the second half of 2024, subject to closing conditions and approvals. Silk Road's board of directors has unanimously approved the deal and recommended shareholders adopt the acquisition agreement.

Boston Scientific expects the impact of the acquisition to be immaterial on its 2024 and 2025 adjusted earnings per share, then become accretive. The impact on GAAP EPS is forecast to be less accretive, or even dilutive, due to amortization and acquisition-related expenses, it said.

Price: 26.84, Change: +5.17, Percent Change: +23.86