Cyberonics Inc. and Sorin Spa, two medical device makers, agreed to combine in a stock deal to form a company valued at $2.7 billion that will compete for lucrative hospital contracts globally. Shares of both companies soared.
Shareholders of Cyberonics, based in Houston, will own about 54 percent of the new company, and Milan-based Sorin’s investors will get the rest, according to a statement today. The new business will be domiciled in the U.K., which has a lower corporate tax rate than the U.S. The merger is a tax inversion for Cyberonics, though the companies said savings from that move didn’t drive the deal.