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%.
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