TOTOWA, N.J. (AP) -- General Electric's GE Healthcare unit said Thursday it signed a deal to acquire medical products maker Vital Signs Inc. in a deal worth about $860 million.
Under the deal, Vital Signs shareholders will receive $74.50 per share in cash for each Vital Signs share they own. The offer represents a 28.4 percent premium over Vital Signs' Wednesday closing stock price of $58.
Vital Signs, which makes products for anesthesia, respiratory, sleep therapy and emergency medicine, will become part of GE Healthcare's Clinical Systems business.
The deal, which is subject to Vital Signs' shareholder and regulatory approvals as well as other customary conditions, is expected to close in the fourth quarter. The companies said shareholders representing 37 percent of Vital Signs' outstanding common stock have agreed to vote their shares in favor of the deal.
Vital Signs shares skyrocketed $14.50, or 25 percent, to $72.50 in premarket activity. The stock has ranged from $45.06 to $61.20 over the past year.