LONDON (ShareCast) - (Sharecast News) - US medical technology group Stryker has agreed to buy spinal technology company K2M Group Holdings for $27.50 a share, or a total equity value of around $1.4bn.
With annual sales of nearly $300m, Stryker said K2M's spine division is "a highly complementary and innovative portfolio", which includes a strong position in the complex spine market. In addition, the company's broad portfolio will strengthen Stryker's offering in the core spinal segment, including an attractive minimally invasive spine portfolio, further Stryker's capabilities in additive manufacturing, and expand the company's global footprint.

Stryker's chairman and chief executive Kevin A. Lobo said the deal underscores the company's commitment to the spinal market, which is the largest segment of orthopaedics with significant unmet needs.

"We believe K2M will significantly enhance our presence with surgeons, patients and employees in both the spine and related neurotechnology markets," he said.

K2M chief executive and president Eric D. Major said: "Stryker's established leadership in the orthopaedic and neurosurgical market, combined with K2M's culture of innovation and leadership in complex spine and minimally invasive solutions, represent a powerful opportunity for Stryker to strengthen its leadership in the $10bn global spine market."

The acquisition is expected to close late in the fourth quarter of this year and is expected to have an immaterial dilutive impact to Stryker's net earnings per diluted share and adjusted net earnings per diluted share for 2018. Stryker said there was no change to its previously announced expected adjusted net earnings per diluted share for the full year, which ranges between $7.22 and $7.27.

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