Stryker to Acquire Mako Surgical for About $1.65 Billion (Wall Street Journal)
Stryker Corp (download 4-page analysis of Stryker HERE) agreed to acquire Mako Surgical Corp. MAKO and its robotic-surgery platform for roughly $1.65 billion, a move aimed at distinguishing Stryker's line of replacement knees and hips for its increasingly cost-conscious hospital customers.
Mako shareholders will receive $30 a share, an 86% premium to the stock's Tuesday closing price. The Fort Lauderdale, Fla., company is expected to issue an additional four million shares in connection with the deal.
Mako makes a robotic arm designed to help surgeons more precisely implant replacement knees and hips during a procedure called Makoplasty. The product is complementary to Stryker's existing line of replacement hip and knee joints and could appeal to hospitals looking to improve procedural efficiency.
"Our combined expertise offers the potential to simplify joint reconstruction procedures, reduce variability and enhance the surgeon and patient experience," said Stryker President and Chief Executive Kevin A. Lobo in a written statement.
Markets reacted coolly to the deal, however, with some investors question...
