February 12, 2023: Globus Medical, a US-based publicly traded medical device company making products to treat musculoskeletal disorders, acquired NuVasive in an all-stock deal worth $3.1 billion.
NuVasive shareholders will receive 0.75 of a share of Globus Medical stock for each share of NuVasive common stock owned at the closing of the transaction, according to a statement from Globus.
Based on this exchange ratio, the implied share price for NuVasive would be $57.72, an equity value of $3.1 billion, based on Globus Medical’s closing share price on February 8.
At the close of the transaction, NuVasive shareholders will own approximately 28% of the combined company, and Globus Medical shareholders will own about 72% on a fully diluted basis.
The transaction may close in the middle of 2023.
Minimally invasive surgery
NuVasive, based in San Diego, California, primarily develops medical devices and procedures for minimally invasive spine surgery.
NuVasive’s products include software systems for surgical planning and monitoring, access instruments, and implantable hardware.
“This transaction reflects our mission to become the leading musculoskeletal technology company in the world by developing products that promote healing in patients with musculoskeletal disorders,” said Dan Scavilla, president and chief executive officer of Globus Medical.
“With NuVasive, we can help support more patients through leading innovation and expanding our commercial reach to provide superior service to our surgeon and hospital partners.”
The musculoskeletal market, which includes the spine, orthopaedics, power tools, and biologics, is worth more than $50 billion globally, and Globus aims to accelerate its globalisation strategy through NuVasive acquisition.
Explore future markets
Together, Globus Medical and NuVasive will have a presence in more than 50 countries with more than 5,000 employees.
The new organisation’s more extensive commercial sales will enable it to penetrate existing and future markets further, reaching more surgeons and patients worldwide, according to the statement.
“Our combination with Globus Medical is transformative, joining two companies with highly complementary capabilities, geographic footprints and customer bases,” said Chris Barry, chief executive officer of NuVasive.
“Together, we will be able to offer an exceptional portfolio of clinically proven solutions supported by strong commercial and surgeon education teams. The new company will be well-positioned to deliver value creation for shareholders, further support our surgeon partners—and most importantly, change the lives of more patients.”
The company will have an eleven-member board composed of all eight directors from Globus Medical’s board and three from NuVasive’s board.
Globus Medical expects 2023 net sales growth of between 7% and 8% constant currency, as compared to the full year 2022, and NuVasive expects 2023 year-on-year net sales growth of between 6% and 8% constant currency.
Globus will report full financial results on February 21, and NuVasive the next day.