KALAMAZOO ? Medical device giant Stryker has agreed to buy Mako Surgical Corp. for $1.65 billion to add technology for robot-assisted surgery.
Investors in Mako will receive $30 a share from Stryker, the companies said Wednesday in a statement. The offer carries an 86 percent premium over Fort Lauderdale-based Mako’s closing price Tuesday.
Mako, founded in 2004, pioneered the use of robotic-assisted surgery in orthopedics. It sells the Rio Robotic Arm, which enables surgeons to precisely and consistently cut through bone. The incisions are designed for the company’s Restoris implants, including partial knee resurfacing in people with early or mid-stage osteoarthritis. Mako recently added an application for total hip replacements.
The transaction, not including acquisition and integration costs, will dilute Stryker’s adjusted earnings by 10 cents to 12 cents a share in the first year, be neutral in the second year and accelerate growth thereafter. Stryker said it expects Mako to issue another 3.953 million shares in connection to an acquisition that Mako anticipates to complete.
Stryker Chief Executive Officer Kevin Lobo said the addition of Mako’s technology to his company’s established position in operating rooms, joint reconstruction and surgical instruments will spur the growth of robotic assisted surgery.
Stryker got financial advice on the transaction from Citigroup Inc. and legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP. Mako received financial advice from JPMorgan Chase & Co. and legal counsel from Wachtell, Lipton, Rosen & Katz and Foley & Lardner LLP.
