The Stryker Corporation, the medical technology company based in Kalamazoo, Mich., said on Wednesday that it would pay $1.65 billion for the MAKO Surgical Corporation.
The agreed price of $30 a share represents a huge 86 percent premium for MAKO, which makes tools for robotic assisted surgery in orthopedics. MAKO shares closed at $16.17 on Tuesday.
“MAKO has established a compelling technology platform in robotic assisted surgery, which we believe has considerable long-term potential in joint reconstruction,†Kevin A. Lobo, chief executive of Stryker, said in a statement.
Stryker investors, however, did not appear to like the news. Stryker shares were down 2.6 percent in premarket trading on Wednesday morning.
The deal also anticipates the issuance of nearly four million additional MAKO shares related to a previously planned acquisition by MAKO. Details of that transaction were not announced.
“The combination of Stryker’s established industry leadership with MAKO’s innovative products and people contains the power to positively transform orthopedics,†Maurice R. Ferré, M.D., chief executive of MAKO, said in a statement. “It is with this in mind that MAKO’s board of directors unanimously voted to recommend that MAKO’s shareholders vote in favor of it.â€
Citigroup advised Stryker, with Skadden, Arps, Slate, Meagher & Flom providing legal counsel.
