US-based medical device company Greatbatch has signed an agreement to acquire Lake Region Medical in a cash and stock deal valued at approximately $1.73bn.

Under the agreement, Lake Region Medical will receive $478m in cash and an aggregate of 5.1 million shares of common stock from Greatbatch, which will also assume $1bn of the former’s net debt.

Approved by the boards of directors of both companies, the deal will create one of the largest medical device original equipment manufacturer (OEM) suppliers in the world focused on cardiac, neuromodulation, vascular, orthopaedics and advanced surgical markets.

"Our customers will be able to accelerate patient access to life enhancing therapies."

Lake Region Medical helps bring life changing products for cardio, vascular and advanced surgical markets, including electrophysiology, vascular access, cardiovascular, urology, oncology, orthopaedics, laparoscopy, biopsy/drug delivery and arthroscopy.

Greatbatch president Thomas Hook said: "Through this transformative deal, we are going to be at the forefront of innovating technologies and products that help change the face of healthcare, providing our customers with a distinct advantage as they bring complete systems and solutions to market.

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"In turn, our customers will be able to accelerate patient access to life enhancing therapies."

Once the deal concludes, the combined firm will employ 9,000 individuals with revenues of $1.5bn. The entity will have operations in the US, Latin America, Europe and Asia-Pacific.

Greatbatch executive vice-president Michael Dinkins said: "We expect considerable operating synergies resulting in sustained profitable growth, as well as double-digit adjusted cash EPS growth."

Subject to customary closing conditions and pending completion of all necessary regulatory reviews, the transaction is expected to close during the fourth quarter of this year.

Greatbatch develops and manufactures critical medical device technologies for the cardiac, neuromodulation, vascular and orthopaedic markets.