Edwards Lifesciences stock edged closer to a breakout Monday after medtech behemoth Becton Dickinson agreed to buy a key division for $4.2 billion.
The all-cash deal focuses on Edwards' critical care business, which includes remote monitoring tools for patients in hospitals. Edwards had been planning to spin off the critical care business, which brought in $928.1 million in sales last year.
BD says the deal will enhance its smart connected care solutions, noting Edwards' critical care division invented the hemodynamic monitoring category. This is a procedure to check blood circulation and evaluate how well the heart is working. It's now used in north of 10,000 hospitals worldwide to monitor the cardiovascular conditions of critically ill patients in real time.
Edwards Lifesciences gained 1.1% to close at 87.86. Shares are forming a flat base with a buy point at 96.12, according to MarketSurge. Becton Dickinson stock jumped more than 2% to 236.92.
Follow Allison Gatlin on X, the platform formerly known as Twitter, at @IBD_AGatlin.
