Medtech giant Stryker (NYSE:SYK) announced this week plans to pay $2.22 per share for California safety-sponge maker Patient Safety Technologies (OTC:PSTX), a deal valued at about $120 million.

The per-share offer, to be paid in cash, represents a 59% premium over PSTX’s $1.40 close at the end of last week. The news sent PSTX shares up to $2.20 as of about 1 p.m. today.

PST and its SurgiCount Medical subsidiary developed the Safety-Sponge System, a platform for identifying and tracking surgical sponges in order to ensure that none are left inside patients following surgery. The mobile SurgiCounter keeps track of bar-coded sponges, providing reports and alerting surgeons as to how many sponges are in or out of patients and how many are left.

SurgiCount in September 2013 announced a 3-year supply deal with group purchasing organization Novation, and as of its most recently reported quarter the company had an installed customer base of 303 facilities using the Safety-Sponge System, representing year-over-year growth of 14%. PST said in November that it already had signed contracts and implementation plans that would bring its base to more than 330.

PST is also mired in a patent infringement lawsuit that it lobbed against rival ClearCount and its SmartSponge Flex and SmartSponge systems. PST is seeking injunctive relief as well as compensatory damages, according to legal filings.

News of Stryker’s acquisition sent PSTX shares soaring, but have done little so far for SYK shares, which were down 0.7% on the day, trading at $74.61 as of about 1:30 p.m., representing a 5-day drop of about 0.5% per share.