Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Medical Action Industries (UNKNOWN:MDCI.DL), a global developer and supplier of disposable medical products, rocketed higher by as much as 94% after agreeing to be acquired by Owens & Minor (NYSE:OMI).

So what: Under the terms of the deal, which values Medical Action Industries at $208 million net of cash, Owens & Minor will pay $13.80 per share in cash that'll be financed by cash on hand as well as its borrowing power available under a revolving credit facility. Although both boards have voted in favor of the deal, Medical Action Industries' shareholders will still need to approve it as well. Owens & Minor is forecasting that the deal will be accretive to adjusted EPS in fiscal 2015 and beyond, and will create $10 million to $12 million in cost synergies by the end of 2016. If approved by Medical Action's shareholders the deal would be expected to close in the fourth quarter.

Now what: The merger and acquisition wave in health care continues, albeit this was a much smaller purchase than some of the proposed deals we've witnessed in recent weeks. It's tough to see how Medical Action Industries' shareholders won't go for the all-cash deal that values their company at a 95% premium to yesterday's close. It also represents a share price that Medical Action Industries' shareholders haven't seen in four years. Given that 45% of Medical Action's business was tied to Owens & Minor in the first place the deal appears to make sense on both ends, with Owens & Minor internalizing its costs and Medical Action shareholders getting a nice premium that's close to 15 times trailing 12-month EBITDA.