US-based medical technology company Stryker has entered a definitive agreement to acquire 100% of the issued and outstanding shares of Wright Medical Group for $30.75 per share.

The deal takes the total equity value to approximately $4bn in cash and total enterprise value to around $5.4bn.

Founded in 1950 and with global sales reaching $1bn, Wright Medical Group has a presence in upper extremities (shoulder, elbow, wrist and hand), lower extremities (foot and ankle) and biologics markets.

The acquisition of Wright Medical will complement Stryker’s trauma and extremities business while also strengthening the latter’s position in this high-growth segment.

Wright Medical CEO and president Robert Palmisano said: “We believe this transaction will provide truly unique opportunities and will create significant value for our shareholders, customers and employees.

“By merging our complementary strengths and collective resources, we will be able to advance our broad platform of extremities and biologics technologies with one of the world’s leading medical technology companies that share our vision of delivering breakthrough and innovative solutions to improve patient outcomes.”

The boards of directors of both the firms have approved the transaction.

Subject to customary closing conditions and approvals, the acquisition is expected to complete in the second half of 2020.

The transaction is not expected to have an impact on Stryker’s net earnings and adjusted net earnings per diluted share this year.

In August, Stryker entered a definitive agreement to acquire 100% of the issued and outstanding stake in spine solutions maker K2M Group in an all-cash deal valued at around $1.4bn.