Medtronic has finalised one of the largest orthopedic deals of the year after acquiring Israel-based Mazor Robotics for $1.7bn.
The acquisition agreement was signed on 20 September and will see Mazor shareholders receive $58.50 per American Depository share, or $29.25 per ordinary share.
Completion of the deal will allow Medtronic to bolster its position in the spine surgery technology area.
Medtronic will now be able to offer an integrated procedural solution for surgical planning, workflow, execution, and confirmation by combining its spine implants, navigation, and 3D imaging technology with Mazor’s robotic-assisted surgery systems.
Medtronic Restorative Therapies Group president and executive vice-president Geoff Martha said: “With the announcement, in bringing the two companies together Medtronic aims to accelerate the advancement and adoption of robotic-assisted surgery in spine for the benefit of patients, providers, and the healthcare system more broadly.
“This is the latest example of our surgical synergy strategy, which we believe will transform spine care through procedural solutions that integrate implants, biologics and enabling technologies like navigation, 3D imaging, robotics and powered surgical tools.”
Medtronic expects robotic-assisted surgery to help in reducing variability, as well as making an impact on procedural outcomes of spine surgeries.
The company also expects the deal to generate a double-digit return on invested capital by year four.
FDA recently cleared the Mazor X Stealth Edition, which was co-developed by Mazor and Medtronic.
The integration of StealthStation software into the Mazor X robotic-assisted surgery platform means procedural predictability and flexibility becomes possible through real-time image guidance, visualisation, and navigation with the help of interactive 3D planning and information systems.