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Stryker acquiring medical device company for $190M
A manufacturer of medical devices and equipment in the region is acquiring a company that will join its surgical division.
Kalamazoo-based Stryker (NYSE: SYK) said today it signed a definitive agreement to acquire all the issued and outstanding shares of common stock of San Francisco-based Invuity (Nasdaq: IVTY) for $7.40 per share, or a total equity value of about $190 million.
Under the terms of the agreement, Stryker will commence a tender offer for all outstanding shares of common stock of Invuity for $7.40 per share in cash.
Stryker said Invuity’s portfolio of products is “highly complementary” to the surgical portfolio of Stryker’s instruments business.
“Invuity’s innovative products in the single-use lighted instrumentation and enhanced energy markets provide best-in-class illumination and help make surgery safer,” said Spencer Stiles, group president, neuro-technology, instruments and spine, Stryker.
“I look forward to the work we will do together to advance Stryker’s mission of making health care better.”
Closing and earnings impact
The boards of directors of Stryker and Invuity have approved the transaction.
The closing date is subject to the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions.
The transaction is expected to close in the fourth quarter of 2018 and have an immaterial impact on net earnings in 2018.
Founded in 2004, Invuity makes advanced photonics and single-use lighted instruments for a range of clinical applications, including orthopedic, spine and general surgery and women’s health procedures.
It also recently entered the enhanced energy market.
Stryker offers a diverse array of medical products and services in the orthopedics, surgical, neuro-technology and spinal markets that “help improve patient and hospital outcomes.”
Its products are used in more than 100 countries around the world.
The company reported 2017 revenue of about $12.4 billion.