Did Stryker Mako Mistake? (OrthoSpineNews)
Stryker (download 4-page analysis of Stryker HERE) plans to pay a pretty penny for robot-assisted surgery outfit MAKO Surgical, signing up to trade $1.7 billion for the company, an 86% premium to its latest closing price.
Through the deal, Stryker gets Mako’s Rio system–a robot-assisted surgical device used in orthopedic procedures–and the company’s fleet of Restoris implants. Sales and services for Rio systems led Mako to $102.7 million in revenue last year, a 22% jump over 2011.
Stryker, by paying nearly twice Mako’s market cap, clearly has quite a bit of faith in the future of robot-assisted surgery for joint reconstruction, and CEO Kevin Lobo said pairing Mako’s technology with Stryker’s global reach will pay off for patients and shareholders.
“Our combined expertise offers the potential to simplify joint reconstruction procedures, reduce variability and enhance the surgeon and patient experience,” Lobo said in a statement.
But Stryker and its wallet seem a little more optimistic about Rio’s growth than Mako itself: In 2012, the company sold 45 of its systems around the globe, and it’s projecting to sell between 45 and 48 in...
