By Dow Jones Business News, September 25, 2013, 08:48:00 AM EDT
By Tess Stynes
Stryker Corp. ( SYK ) agreed to acquire Mako Surgical Corp. ( MAKO ) for roughly $1.65 billion, a move that will provide
the orthopedics product maker with access to Mako's robotic assisted surgery platform.
Mako shareholders will receive $30 a share, a 86% premium to its Tuesday closing price. Mako is expected to issue an
additional 4 million shares in connection with the deal. Shares surged 82% to $29.46 premarket.
Mako makes a surgeon-interactive robotic arm designed to allow surgeons greater prediction with a partial knee or
total hip replacement procedure called Makoplasty.
Stryker President and Chief Executive Kevin A. Lobo said Stryker thinks that Mako's technology platform has "
considerable long-term potential in joint reconstruction".
"Our combined expertise offers the potential to simplify joint reconstruction procedures, reduce variability and
enhance the surgeon and patient experience," Mr. Lobo added.
Makers of orthopedic products, which have been hurt as economic worries led some people to delay surgeries, have seen
some signs of strengthening in the joint-reconstruction market recently. Stryker has said it expects revenue growth for
the overall U.S. hip-and-knee market to rise in the low- to midsingle-digit range.
Stryker also aiming to recover from a series of problems related to some of its devices that have resulted in some
The acquisition is expected to reduce Stryker's adjusted per-share earnings by about 10 cents to 12 cents in the first
full year after it closes, be neutral in the second year and add to the bottom line after that.
Spokesmen for the companies weren't immediately available to provide further comment.
Stryker shares closed at $70.83 and were inactive premarket.
Write to Tess Stynes at email@example.com
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