Stryker Corp said it would be purchasing Mako Surgical Corp for USD 1.65 billion. The acquisition would enable the second largest seller of orthopedic devices to enhance its robotic surgeries technology. Michigan-based Stryker offered to give Mako Surgical's stakeholders US 30 per share. According to Bloomberg, this represented a premium of 86% of Mako Surgical's most recent closing price.
Stryker's adjusted earnings would be diluted by 10 cents to 12 cents per share in the first year of the acquisition. Earnings would be neutral in the second year. Afterwards, accelerated growth would be expected.
Mako Surgical was established in 2004. It is engaged in the business marketing and selling the Rio Robotic Arm and Restoris brands. These implants enable surgeons to do partial knee resurfacing procedures for those suffering from osteoarthritis in its early to middle stages. The latest addition to its line of robotic surgeries is a robotic arm for those who need to undergo total hip replacement procedures.
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