Sector News

Stryker to acquire spinal technology company K2M

September 4, 2018
Life sciences

Medical technology company Stryker Corp. said Thursday it has agreed to acquire K2M Group Holdings Inc. for $27.50 a share or a total equity value of $1.4 billion.

K2M was founded in 2004 and has become a player in the $10 billion market for technology to treat spinal disorders with annual sales of close to $300 million. “K2M brings to Stryker’s Spine division a highly complementary and innovative portfolio, which includes a strong position in the complex spine market,” Stryker said in a statement.

The deal is expected to close in the fourth quarter and will not have a material impact on Stryker’s EPS or adjusted EPS in 2018.

The company is sticking with its adjusted EPS guidance of $7.22 to $7.27.l K2M shares were halted for the news. Stryker shares were slightly lower, but have gained 11% in 2018, while the S&P 500 has gained 9%.

By Ciara Linnane

Source: MarketWatch

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