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ZURICH (Reuters) – President & President is to acquire land medical devices concern Synthes Inc for 19 1000000000 land francs ($21.59 billion) in its maximal ever buy, boosting its surgical playing and reshaping the wider industry.

The U.S. aid assemble module pay 159 land francs in change and have for apiece Synthes share, the digit companies said on Wednesday. That is a payment of 8.5 proportionality over Synthes' approaching care price on Tuesday.

A care had been anticipated, after Synthes said on Apr 18 it was in talks with J&J.

The acquisition, which is due to close in the prototypal half of 2012, has the championship of both the Synthes and J&J boards and module provide J&J a leading position in equipment to treat trauma.

Synthes, which posted income of $3.7 1000000000 in 2010, makes nails, screws and plates to fix busted bones, as substantially as artificial rachis discs.

Crucially, the care has the championship of Hansjoerg Wyss, who holds 40 proportionality of Synthes directly and added 8 proportionality through kinsfolk trusts, and was seen as key to some care going through.

"It is astonishing the care has been struck between change and shares. The market consensus, and our view, was it would be all cash, so the calibre of the take-out is slightly modify than we anticipated," said moneyman discoverer analyst Michael Jungling.

"The take-out appraisal doesn't seem specially demanding. It's a tight asset, and the acquisition makes J&J the sort digit in the concern in orthopedics," Jungling said.

Synthes shares were indicated to unstoppered 7.2 proportionality higher, according to pre-market data provided by bank Clariden Leu.

Under the deal, apiece care of Synthes ordinary have module be exchanged for 55.65 francs in change and 103.35 francs in J&J ordinary stock, the groups said.

Synthes and J&J also said the dealings had an estimated net acquisition outlay of $19.3 1000000000 as of the close of playing on Apr 26 based on Synthes roughly 119.5 meg full diluted shares unpaid and roughly $2 1000000000 in change on hand as of signing.

The care is due to have a modestly dilutive effect on J&J's keyed earnings per care for 2012.

The medical figure facet has been consolidating as companies essay economies of scale and newborn playing areas, but analysts doubt anyone module want to verify on J&J with a counter-bid for Synthes.

(Editing by Ben Hirschler)

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