Stryker (NYSE:SYK) today agreed to pay $52 million to acquire TSO₃ (TSX:TOS) and its Sterizone VP4 sterilizer.

The C43¢-per-share offer works out to about C$68.4 million ($51.7 million), representing an 18% premium on the 30-day volume-weighted average share price, Quebec City-based TSO₃ said.

“TSO₃‘s board of directors and management believe that this transaction provides the best liquidity opportunity for shareholders. Reaching this conclusion is an important step for TSO₃ as well as current and future customers, as it will provide the expertise and the financial resources to best help TSO₃ achieve its full potential. We look forward towards its successful completion,” president & CEO Ric Rumble said in prepared remarks.

Although the deal bars TSO₃ from seeking other offers, it can field any unsolicited offers that top Stryker’s bid, provided that the Kalamazoo, Mich.-based orthopedics giant is given the right to match or exceed the second offer, TSO₃ said. The agreement, slated to close during the fourth quarter, also includes a nearly C$3.1 million ($2.3 million) kill fee payable to Stryker should the deal founder.

In a separate release, TSO₃ posted 12.5% wider second-quarter losses of -$4.2 million, or -4.5¢ per share, on sales growth of 100.5% to $748,000 for the three months ended June 30, compared with Q2 2018.

TOS shares were up 10.4% to C42.5¢ today in mid-morning activity in Toronto.

($1 = C$1.32284)