Johnson & Johnson (JNJ) has agreed to purchase Shockwave Medical (SWAV) for a deal totaling $13.1 billion, with the total equity value at $12.5 billion. The deal is meant to boost Johnson & Johnson's efforts to expand into making medical devices to treat heart disease.

Yahoo Finance Reporter Anjalee Khemlani joins Yahoo Finance to discuss Johnson & Johnson's push to grow its medical technology sector.

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Editor's note: This article was written by Nicholas Jacobino

Video Transcript

MADISON MILLS: Well, Anjalee, Johnson and Johnson also agreed to purchase Shockwave Medical this morning for $12.5 billion. I know you know a lot of the details of this deal. Talk us through it.

ANJALEE KHEMLANI: Yeah. The deal itself wasn't surprising. But it is quite a large deal. We know that it ranks up there among the deals for the year. I would hesitate to say the largest. But it is a good cardiology play for Johnson and Johnson, especially, for its medtech line of business.

We know that medical devices strong suit, cardiology, also, for Johnson and Johnson, especially, after it spun off its consumer space. It has been looking at really beefing up the pharma side as well as the medtech side.

And that medtech side has been a slow growth area for the company in the last few years. So this could really boost what the company has to offer. This deal really is something that investors are excited about.

So a letter of intent out right now, and should close this year.

SEANA SMITH: All right. Anj, thanks so much for that.