US medical equipment manufacturer Stryker has signed a definitive agreement to acquire Mako Surgical, developer of robotic solution and implants for minimally invasive orthopaedic procedures, for $30 per share with an aggregate purchase price of approximately $1.65bn.
Mako Surgical markets joint-specific applications for the knee and hip, proprietary Restoris implants for orthopaedic procedures called MAKOplasty, and the Rio robotic arm interactive orthopaedic system.
The Rio is a surgeon-interactive tactile surgical platform that incorporates a robotic arm and patient-specific visualisation technology, which enables precise, consistently reproducible bone resection for the accurate insertion and alignment of Mako's Restoris implants.
Stryker president and CEO Kevin A Lobo said the company believes robotic assisted surgery has considerable long-term potential in joint reconstruction.
"The acquisition of MAKO combined with Stryker's strong history in joint reconstruction, capital equipment (operating room integration and surgical navigation) and surgical instruments will help further advance the growth of robotic assisted surgery," Lobo said.
The deal will see Stryker gain access to Mako's technology for robot-assisted orthopaedic surgery and boost its orthopaedic pipeline.
Mako president and CEO Dr Maurice R Ferré said the combination of Stryker's established industry leadership with MAKO's innovative products and people contains the power to positively transform orthopeadics.
"It is with this in mind that MAKO's board of directors unanimously voted to recommend that MAKO's shareholders vote in favor of it," Dr Ferré said.
According to the company, the deal will be subject to customary closing conditions.
Skadden, Arps, Slate, Meagher & Flom LLP served as outside legal advisors for Stryker, while Citigroup served as financial advisor in connection with this transaction.
Image: Rio robot-assisted surgery system. Photo: courtesy of Mako Surgical Corp.