ICU Medical to buy Pfizer's infusion therapy business

Medical device maker ICU Medical have announced that it is to buy pharmaceutical corporation Pfizer’s global infusion therapy business, Hospira Infusion Systems.

The business will be sold for $1 billion in cash and stock. Pfizer will receive $600 million in cash and nearly $400 million in newly issued shares of ICU Medical common stock. The exchange of stock will give Pfizer a stake of around 16.6% in the company.

ICU's shares rose about 7% to $135 in light premarket trading on Thursday.

As part of the sale Pfizer will get the right to nominate one director to ICU Medical’s board, as long as the company maintains a 10% stake.

The companies said that he deal is expected to close in the first quarter of 2017.