(Reuters) -Device maker Globus Medical Inc said on Thursday it was acquiring peer NuVasive Inc in an all-stock deal valued at about $3 billion to increase its scale in the competitive surgical space.
NuVasive shareholders will receive 0.75 of Globus’ share, which implies a stock price of $57.72 for NuVasive, representing a premium of about 26% to its last close.
The acquisition by Globus, which is a provider of implantable devices and instruments used in spinal and orthopedic surgeries, has been in the works since late 2021.
The deal, expected to close in the middle of this year, boosts Globus’ presence in the spine surgery market, which has larger companies like Johnson & Johnson and Medtronic Plc.
NuVasive makes implants, instruments and imaging solutions used in spinal surgeries. The company reported sales of $896.5 million for the first nine months of 2022.
Globus also makes devices for spine surgery. It reported sales of $748.3 million for the first three quarters of last year.
Following the close of the transaction, NuVasive shareholders will own about 28% of the combined company, and Globus Medical shareholders will own around 72%.
(Reporting by Raghav Mahobe in Bengaluru; Editing by Maju Samuel)
