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Medtronic Moves a Step Ahead With Mazor Robotics Buyout
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Medtronic plc (MDT - Free Report) has moved a step forward with respect to its earlier-announced Mazor Robotics acquisition update. The company recently stated that at a special general meeting, shareholders of Mazor Robotics approved this definitive merger agreement, which was commenced earlier in September.
Per the announcement, around 53% of Mazor Robotics ordinary shares was presented at the meeting. Of this, roughly 95% was cast in favor of the merger as these shares were neither held by a Medtronic affiliated party nor by a controlling shareholder of the company or any stockholder with personal interest in the merger proposal.
Financial Terms of the Deal
On completion of the transaction, shareholders of Mazor Robotics will receive $58.50 per American Depository Share or $29.25 per ordinary share in cash for a total of approximately $1.64 billion. 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. The transaction is expected to close during Medtronic's third-quarter fiscal 2019.
Details of the Deal
Medtronic’s decision to acquire the Israel-based robotic surgical guidance systems company Mazor Robotics is aligned with the company’s focus on growth in the field of robotics spine surgery.
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 into a more accurate, modern guided procedure. The buyout is expected to 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. The company is also likely to further utilize Mazor Robotics' legacy of innovation in surgical robotics with the company’s site and team based in Israel.
Market Potential in Spine Space
According to a Mordor Intelligence report, the global market for Spinal Surgery Devices is estimated to reach a worth of $16.6 billion by 2021 at a CAGR of 5% from 2016 onward. Taking such bountiful prospects into consideration, we believe, the company’s latest development is a strategic fit.
Share Price Performance
Over the past three months, shares of Medtronic have outperformed its industry. The stock has inched up 0.4% against the industry’s 2.3% decline.
Zacks Rank & Key Picks
Medtronic currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical space are Stryker Corporation (SYK - Free Report) , Masimo Corporation (MASI - Free Report) and Veeva Systems (VEEV - Free Report) .
Masimo’s long-term earnings growth rate is projected at 14.6%. The stock carries a Zacks Rank of 2.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock is a Zacks #2 Ranked player.
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Medtronic Moves a Step Ahead With Mazor Robotics Buyout
Medtronic plc (MDT - Free Report) has moved a step forward with respect to its earlier-announced Mazor Robotics acquisition update. The company recently stated that at a special general meeting, shareholders of Mazor Robotics approved this definitive merger agreement, which was commenced earlier in September.
Per the announcement, around 53% of Mazor Robotics ordinary shares was presented at the meeting. Of this, roughly 95% was cast in favor of the merger as these shares were neither held by a Medtronic affiliated party nor by a controlling shareholder of the company or any stockholder with personal interest in the merger proposal.
Financial Terms of the Deal
On completion of the transaction, shareholders of Mazor Robotics will receive $58.50 per American Depository Share or $29.25 per ordinary share in cash for a total of approximately $1.64 billion. 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. The transaction is expected to close during Medtronic's third-quarter fiscal 2019.
Details of the Deal
Medtronic’s decision to acquire the Israel-based robotic surgical guidance systems company Mazor Robotics is aligned with the company’s focus on growth in the field of robotics spine surgery.
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 into a more accurate, modern guided procedure. The buyout is expected to 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. The company is also likely to further utilize Mazor Robotics' legacy of innovation in surgical robotics with the company’s site and team based in Israel.
Market Potential in Spine Space
According to a Mordor Intelligence report, the global market for Spinal Surgery Devices is estimated to reach a worth of $16.6 billion by 2021 at a CAGR of 5% from 2016 onward. Taking such bountiful prospects into consideration, we believe, the company’s latest development is a strategic fit.
Share Price Performance
Over the past three months, shares of Medtronic have outperformed its industry. The stock has inched up 0.4% against the industry’s 2.3% decline.
Zacks Rank & Key Picks
Medtronic currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the broader medical space are Stryker Corporation (SYK - Free Report) , Masimo Corporation (MASI - Free Report) and Veeva Systems (VEEV - Free Report) .
Stryker has an expected long-term earnings growth rate of 10% and a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Masimo’s long-term earnings growth rate is projected at 14.6%. The stock carries a Zacks Rank of 2.
Veeva Systems’ long-term earnings growth rate is estimated at 19.3%. The stock is a Zacks #2 Ranked player.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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