By Anna Chesca, Aditya Tatwawadi, Ahyaan Malik, and Alex Scothorn (University of Cambridge); Edward Mazin, Charlie Hogshire, Caden Viehe, Olin Duncan, and Ryan Trachuk (UCLA)
Photo: Piron Guillaume (Unsplash)
Overview of the deal
Acquirer: Stryker Corporation
Target: Inari Medical, Inc
Implied Equity Value: $4.8bn
Total Transaction Size: $4.9bn
Closed date: 31/03/2025 (expected)
Target advisor: Citi (financial) & Sidley Austin LLP (Legal)
Acquirer advisor: Morgan Stanley (financial) & Wachtell, Lipton, Rosen & Katz (legal)
The acquisition of Inari Medical strengthens Stryker’s position in minimally invasive vascular therapies, broadening its portfolio to include advanced clot removal systems, venous thromboembolism (VTE) treatments, and related devices. This enhances Stryker’s existing vascular and interventional offerings, such as its neurovascular and embolization solutions, while adding Inari’s flagship products like FlowTriever and ClotTriever. The deal creates revenue synergies through cross-promotion with Stryker’s global hospital network and R&D capabilities, enabling integrated solutions for venous disease. It positions Stryker to better serve clinicians and patients seeking efficient, less invasive treatments, particularly as demand grows for vascular care amid rising VTE prevalence and ageing populations.
For Inari, the deal accelerates access to Stryker’s global distribution infrastructure and commercialization expertise, boosting market penetration. Inari will also leverage Stryker’s resources for faster innovation cycles and operational efficiencies, reducing costs. Overall, the acquisition underscores Stryker’s strategy to dominate high-growth vascular segments, aligning with broader healthcare trends toward minimally invasive, cost-effective therapies that improve patient outcomes and reduce hospital stays.
“The acquisition of Inari expands Stryker’s portfolio to provide life-saving solutions to patients who suffer from peripheral vascular diseases” - Kevin Lobo, Chair and Chief Executive Officer, Stryker
Company Details (Acquirer - Stryker)
Stryker Corporation (NYSE: SYK) is a leading global medical technology company that specialises in medical devices, surgical equipment, orthopaedics, and neurotechnology. Headquartered in Kalamazoo, Michigan, USA, the company provides innovative healthcare solutions across multiple specialties, including joint replacement, trauma, spine, and robotics-assisted surgery.
Founded in 1941, headquartered in Kalamazoo, Michigan, USA
CEO: Kevin A. Lobo (2012-)
Number of employees: 52,000
Market Cap: $148.8bn (as of 30/01/2025)
EV: $156.5bn
Revenue: $22.6bn
EBITDA: $5.9bn
EV/Revenue: 6.9x
EV/EBITDA: 26.8x
Recent Transactions: $244mn acquisition of Serf SAS (Mar 2024); $521mn acquisition of Cerus Endovascular (Oct 2022); $3.32bn acquisition of Vocera Communications (Jan 2022).
Company Details (Target - Inari Medical)
Inari Medical is a medical device company developing innovative, minimally invasive solutions for venous and arterial diseases. Inari Medical specializes in catheter-based mechanical thrombectomy devices designed to treat conditions such as deep vein thrombosis (DVT), pulmonary embolism (PE), and chronic limb-threatening ischemia (CLTI). Inari Medical was founded with the mission of improving patient outcomes by establishing safer, more effective treatments as the standard of care. The company also emphasizes clinical research, physician education, and global expansion to advance medical technology.
Founded in 2011, headquartered in Irvine, California, USA
CEO: Andrew J. Hykes
Number of employees: ~1,300
Market Cap: $4.7bn (as of 30/01/2025)
EV: $4.6bn
LTM Revenue: $574.5m
LTM EBITDA: $-26.1m
LTM EV/Revenue: 8.00x
Projections and Assumptions
Short-Term Consequences
Under the finalised agreement, Stryker will purchase Inari Medical at a price of $80 per share, representing a premium of over $30 per share. Following the official announcement, Inari’s stock price rose sharply by 30% in regular trading, then climbed another 21% after the market closed. This surge arrived on the back of a challenging year for Inari, during which its valuation declined by 21%, trailing the performance of the S&P 500 healthcare index.
In a statement accompanying the deal, Stryker’s Chief Executive Officer Kevin Lobo highlighted the strategic benefits, emphasizing that Inari’s “innovations elevate the standard of care for venous thromboembolism patients and will accelerate Stryker’s impact in endovascular procedures.” By acquiring Inari, Stryker aims to bolster its capacity to develop next-generation treatments for venous thromboembolism, further positioning the company as a key player in endovascular technologies.
This merger also takes place at a time of heightened demand for medical implant devices in the United States. Many individuals, particularly older adults, are now opting for surgeries they had postponed during the COVID-19 pandemic, driving an uptick in procedure volumes across the sector. Stryker hopes that adding Inari’s expertise and product offerings will help it quickly roll out more innovative solutions and broaden its market footprint, ultimately enhancing the company’s overall impact in treating cardiovascular conditions.
Long-Term Upsides
Stryker’s acquisition of Inari Medical positions the company for significant long-term growth in the high-margin peripheral vascular market. By integrating Inari’s venous thromboembolism (VTE) treatment expertise with Stryker’s Neurovascular business, the deal unlocks synergies, market expansion opportunities, and financial benefits.
With approximately 900,000 VTE cases annually in the U.S., the multi-billion-dollar market offers strong revenue potential. Inari’s innovative thrombectomy solutions address critical unmet needs, eliminating the need for thrombolytic drugs and offering safer, more effective treatment. Leveraging Stryker’s global distribution network, Inari’s products could achieve 10-15% annual revenue growth, enhancing long-term earnings.
Operational efficiencies will drive an estimated $50-$100 million in annual cost savings through streamlined procurement, logistics, and R&D integration. Stryker’s regulatory expertise will further accelerate global approvals for Inari’s products, expediting international expansion. Additionally, combining Stryker’s AI-driven diagnostics and robotic-assisted technologies with Inari’s solutions could revolutionize vascular care.
This acquisition also strengthens Stryker’s ESG positioning by reducing reliance on pharmaceuticals and improving patient outcomes. With enhanced cost efficiencies, accelerated innovation, and entry into a high-growth market, Stryker is well-positioned for sustained industry leadership and long-term earnings growth.
Risks and Uncertainties
Stryker’s $8.1 billion acquisition of Inari Medical, valued at 8.1x expected FY24 sales, has raised investor concerns about whether the deal will generate sufficient returns (AInvest). Regulatory hurdles, including antitrust approvals, pose additional risks to completion (Global News Wire). Cybersecurity vulnerabilities are also a growing concern in healthcare M&A, particularly during consolidation when sensitive patient data may be exposed (Ahead). Additionally, Stryker has a history of overpaying for acquisitions, with past deals like Wright Medical and K2M Group failing to meet growth projections, raising doubts about its ability to execute successfully (Business Wire).
The company’s high leverage, at nearly 5x total debt to EBITDA, could limit financial flexibility for future strategic moves (Business Wire). Integration challenges —incorporating Inari’s R&D, technology, and compliance procedures while ensuring talent retention — could lead to operational disruptions and unexpected costs. Finally, broader market uncertainties and economic headwinds may impact the medical device industry, potentially affecting the anticipated benefits of the acquisition (MedTech Dive).