Stryker acquires Mako Surgical for $1.65B
Kalamazoo-based Stryker said Wednesday that it has reached a definitive agreement to acquire Mako Surgical and all of its robotic-assisted surgery technology for $1.65 billion.
The medical device maker will pay $30 per Mako share, an 86-percent premium to its $16.17 closing price Tuesday.
Shares of Ft. Lauderdale, Fla.-based Mako soared 84 percent to $29.73 before the opening bell Wednesday.
Mako Surgical Corp. has approximately 47 million outstanding shares, according to FactSet.
Shares of Stryker Corp. (NYSE: SYK) fell $1.83, or 2.6 percent, to $69, in pre-market trading.
Stryker CEO Kevin Lobo said Mako's robotic technology has long-term potential for human joint reconstruction.
Mako's products include its Rio robotic arm interactive orthopedic system and its Restoris implants. It also recently introduced the Makoplasty total hip arthroplasty, a new robotic-arm system that’s used for complete hip replacements.
The transaction must still be approved by Mako shareholders.
Stryker said that the acquisition will likely shave about 10 to 12 cents per share in adjusted earnings during the first full year. The deal is anticipated to be neutral to its earnings in the second year and add to earnings after that point.