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Orthopedic and Dental Industry News Complete Archive »

Stryker to Acquire MAKO Surgical for $1.65B BY LAUREN UZDIENSKI, SEPTEMBER 25, 2013

Stryker announced plans this morning to acquire orthopedic robotics company MAKO Surgical Corp. for $30.00 per share in cash, valuing the transaction at approximately $1.65 billion overall. The purchase price represents an 86% premium to yesterday's close and approximately 13.0x estimated 2013 revenues of $126.5 million.

MAKO markets the RIO Robotic Arm Interactive Orthopedic System, a platform for robotic-assisted orthopedic surgery. The system can currently be used to perform a MAKOplasty unicompartmental knee replacement as well as a total hip. MAKO manufactures their own line of RESTORIS implants to be used with their RIO platform, but analysts have speculated that Stryker's implants will eventually be made available for use with RIO.

Stryker represents the first orthopedics company to acquire a specialized orthopedic robotics company, and analysts have generally responded favorably to the transaction, noting that robotics represent a differentiated, high-growth technology and that the capital equipment component of MAKO's business could be integrated well at Stryker, which already has a capital equipment division in addition to its orthopedic reconstruction division.

Stryker did not announce a projected closing date. At mid-day, Stryker's stock was down around 2% on the news.

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