Why NxStage Medical, Inc. Is Skyrocketing Today

Shares of NxStage Medical (NASDAQ: NXTM), a medical device maker focused on end-stage renal disease and acute kidney failure, jumped 28% as of 11:40 a.m. EDT on Monday.

NxStage Medical reported its second-quarter earnings results earlier today. The company's top line grew 5% to $96.2 million while its net loss came in at $2.1 million, or $0.03 per share. These numbers fell a bit short of what market watchers had expected. However, the earnings report is being overshadowed by the news that it has accepted a buyout offer from Fresenius Medical Care (NYSE: FMS).

Fresenius, which is the world's largest provider of dialysis products and services, agreed to acquire NxStage Medical in an all-cash deal worth $2 billion. That translated into a share price of $30 and represents a 30% premium to NxStage Medical's closing price on Friday. Fresenius plans on financing the deal with a combination of cash on hand and through debt.

Source: Fool.com