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Medtronic to Buy Mazor Robotics for Robotic Spine Surgery
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Medtronic (MDT - Free Report) has taken its existing relationship with Mazor Robotics to the next level. In a bid to grow further in the field of robotics spine surgery, Medtronic decided to acquire the Israel-based robotic surgical guidance systems company for $1.64 billion in cash.
Financial Terms of the Deal
Medtronic recently entered into a definitive merger agreement with Mazor Robotics under which, the former will acquire all outstanding ordinary shares of the latter for $58.50 per American Depository Share or $29.25 per ordinary share in cash. This turns out to be a total of $1.64 billion or $1.34 billion net of Medtronic's existing stake in Mazor and cash acquired. Both companies’ boards have unanimously approved this deal.
Deal: A Strategic Fit?
Per Medtronic, the acquisition is expected to be strategically fit for the company’s growing spine surgery business. The integrationwill further fortify Medtronic's leading position in this niche.
The company noted that Mazor Robotics' proprietary core platform technology including the Mazor X Robotic Guidance System and the Renaissance Surgical-Guidance System are transforming spinal surgery from freehand procedures to a more accurate, modern guided procedure. The buyout will combine Medtronic's market-leading spine implants, navigation and intra-operative imaging technology with the acquired company's robotic-assisted surgery (RAS) systems.
Post completion of the transaction, Medtronic expects to offer a fully-integrated procedural solution for surgical planning, execution and confirmation. Medtronic also expects to further utilize Mazor Robotics' legacy of innovation in surgical robotics with the company’s site and team based in Israel.
Both companies currently expect to showcase this technology integration at the upcoming NASS (North American Spine Society) 2018 Annual Meeting in Los Angeles.
Existing Relationship With Mazor Robotics
Back in 2016, Medtronic and Mazor Robotics first announced the strategic alliance for the commercialization and co-promotion of Mazor X platform, an innovative guidance system for spine surgery. The platform has been going strong ever since. Since the signing of the agreement, the companies have actively invested in co-marketing, promotion and training efforts for the commercialization of Mazor X.
In August 2017, Medtronic expanded the partnership with Mazor Robotics to become the exclusive worldwide distributor of the Mazor X system.
Notably, Medtronic is making consistent efforts to broaden its spine business base under the Restorative Therapies Group (RTG). In first-quarter fiscal 2019, Mazor X distribution played an important growth driver.
Market Potential in Spine Space
According to a Mordor Intelligence report, the global market for Spinal Surgery Devices is estimated to reach a value of worth $16.6 billion by 2021 at a CAGR of 5% from 2016 to 2021. Taking the bountiful prospects from this sphere into consideration, we believe, the company’s latest development is strategic.
Share Price Performance
Over the past three months, shares of Medtronic have outperformed the industry. The stock has rallied 12.3% compared with the industry’s 7.3% growth.
Zacks Rank and Key Picks
Medtronic carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Amedisys, Inc. (AMED - Free Report) and Masimo Corporation (MASI - Free Report) .
Intuitive Surgical’s expected long-term earnings growth rate is 14.7%. The stock currently carries a Zacks Rank #2 (Buy).
Masimo’s expected long-term earnings growth rate is 14.8%. The stock has a Zacks Rank of 2 at present.
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Medtronic to Buy Mazor Robotics for Robotic Spine Surgery
Medtronic (MDT - Free Report) has taken its existing relationship with Mazor Robotics to the next level. In a bid to grow further in the field of robotics spine surgery, Medtronic decided to acquire the Israel-based robotic surgical guidance systems company for $1.64 billion in cash.
Financial Terms of the Deal
Medtronic recently entered into a definitive merger agreement with Mazor Robotics under which, the former will acquire all outstanding ordinary shares of the latter for $58.50 per American Depository Share or $29.25 per ordinary share in cash. This turns out to be a total of $1.64 billion or $1.34 billion net of Medtronic's existing stake in Mazor and cash acquired. Both companies’ boards have unanimously approved this deal.
Deal: A Strategic Fit?
Per Medtronic, the acquisition is expected to be strategically fit for the company’s growing spine surgery business. The integrationwill further fortify Medtronic's leading position in this niche.
The company noted that Mazor Robotics' proprietary core platform technology including the Mazor X Robotic Guidance System and the Renaissance Surgical-Guidance System are transforming spinal surgery from freehand procedures to a more accurate, modern guided procedure. The buyout will combine Medtronic's market-leading spine implants, navigation and intra-operative imaging technology with the acquired company's robotic-assisted surgery (RAS) systems.
Post completion of the transaction, Medtronic expects to offer a fully-integrated procedural solution for surgical planning, execution and confirmation. Medtronic also expects to further utilize Mazor Robotics' legacy of innovation in surgical robotics with the company’s site and team based in Israel.
Both companies currently expect to showcase this technology integration at the upcoming NASS (North American Spine Society) 2018 Annual Meeting in Los Angeles.
Existing Relationship With Mazor Robotics
Back in 2016, Medtronic and Mazor Robotics first announced the strategic alliance for the commercialization and co-promotion of Mazor X platform, an innovative guidance system for spine surgery. The platform has been going strong ever since. Since the signing of the agreement, the companies have actively invested in co-marketing, promotion and training efforts for the commercialization of Mazor X.
In August 2017, Medtronic expanded the partnership with Mazor Robotics to become the exclusive worldwide distributor of the Mazor X system.
Notably, Medtronic is making consistent efforts to broaden its spine business base under the Restorative Therapies Group (RTG). In first-quarter fiscal 2019, Mazor X distribution played an important growth driver.
Market Potential in Spine Space
According to a Mordor Intelligence report, the global market for Spinal Surgery Devices is estimated to reach a value of worth $16.6 billion by 2021 at a CAGR of 5% from 2016 to 2021. Taking the bountiful prospects from this sphere into consideration, we believe, the company’s latest development is strategic.
Share Price Performance
Over the past three months, shares of Medtronic have outperformed the industry. The stock has rallied 12.3% compared with the industry’s 7.3% growth.
Zacks Rank and Key Picks
Medtronic carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are Intuitive Surgical (ISRG - Free Report) , Amedisys, Inc. (AMED - Free Report) and Masimo Corporation (MASI - Free Report) .
Intuitive Surgical’s expected long-term earnings growth rate is 14.7%. The stock currently carries a Zacks Rank #2 (Buy).
Amedisys’ expected long-term earnings growth rate is 18.6%. The stock sports a Zacks Rank #1 (Strong Buy) at the moment. You can see the complete list of today’s Zacks #1 Rank stocks here.
Masimo’s expected long-term earnings growth rate is 14.8%. The stock has a Zacks Rank of 2 at present.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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