Medtronic to buy Mazor to accelerate use of robotics in spine procedures
A merger aims to bring together a robotic surgery company and an implant and imaging company to improve spinal procedures.
Medtronic says it plans to acquire Israel-based Mazor Robotics, in a deal announced last week. Under terms of the definitive merger agreement, Dublin-based Medtronic will buy all outstanding ordinary share of Mazor for $58.50 per American Depository Share, or $29.25 per ordinary share, in a cash deal valued at $1.64 billion.
Medtronic already has an existing stake in Mazor—excluding the value of that stake and the amount of cash Mazor holds, the net value of the purchase will be $1.34 billion, Medtronic contends.
The combination of the companies’ technologies aims to improve the accuracy of spine surgery through the use of robotics. Medtronic provides enabling technologies for these types of surgeries, including intra-operative imaging technology, spine implants and navigation tools.
The combination is expected to amplify the success of Mazor products, which the partners contend are transforming spinal surgery from “freehand procedures to accurate, state-of-the-art guided procedures,” they say.
Medtronic executives say the eventual goal is for the company to offer a fully integrated procedural solution for surgical planning, execution and confirmation.
This transaction builds on a relationship that started in May 2016 under a multi-phased strategic and equity investment agreement between Medtronic and Mazor. In August 2017, Medtronic expanded the partnership to become the exclusive worldwide distributor of the Mazor X system.