San Clemente, Calif.-based medical device manufacturer ICU Medical will acquire New York City-based Pfizer's infusion-systems business in a $1 billion cash-and-stock deal, according to Wall Street Journal.
According to the agreement, ICU Medical will buy Pfizer's Hospira Infusion Systems business for $400 million in newly issued shares and $600 million in cash. Pfizer bought Hospira Infusion Systems in February for a total enterprise value of $17 billion .
The transaction gives Pfizer a 16.6 percent stake in ICU Medical. Pfizer will also be able to nominate one of the company's directors to ICU Medical's board of directors, according to the article. Pfizer reportedly agreed to certain restrictions regarding the transfer of its ICU Medical shares for 18 months following the close of the deal, according to the article.
The agreement is subject to regulatory approval. Officials from both companies expect the deal to close in the first quarter of 2017.