Medical technology firm Stryker has signed an agreement to acquire US-based K2M Group Holdings for an equity value of around $1.4bn.
Established in 2004, K2M Group is engaged in the design, development and commercialization of complex spine and minimally invasive spine technologies for the treatment of complicated spinal pathologies.
K2M chairman, CEO and president Eric Major said: “Stryker’s established leadership in the orthopedic and neurosurgical market, combined with K2M’s culture of innovation and leadership in complex spine and minimally invasive solutions, represent a powerful opportunity for Stryker to strengthen its leadership in the $10 billion global spine market.”
The company’s omplex spine and minimally invasive solutions focuses on achieving three-dimensional total body balance.
K2M has Balance ACS platform, which offers products, services and research to support surgeons achieve three-dimensional spinal balance across the axial, coronal, and sagittal planes.
K2M’s complex spine solutions include Nile proximal fixation spinal system, Yukon OCT spinal system, Mesa deformity spinal system and Denali mini spinal system.
The firm’s minimally invasive solutions comprised of Everest minimally invasive XT spinal system, Cascadia lateral 3D interbody system, Serengeti minimally invasive retractor system, and Ravine lateral access system.
K2M’ also provides degenerative solutions such as Ozark guide cervical plate system, Cascadia TL 3D interbody system and Cayman anterior plate system.
The acquired business will allow Stryker to expand its operations in the complex spine market, in addition to strengthening capabilities in additive manufacturing.
The combined business is said to have a competitive portfolio across Stryker’s spine product categories, enabling to provide more products to the customers.
Subject to customary closing conditions, the deal is expected to complete in the fourth quarter of this year.
Stryker chairman and CEO Kevin Lobo said: “This acquisition underscores our commitment to the spinal market, which is the largest segment of Orthopaedics with significant unmet needs.
“We believe K2M will significantly enhance our presence with surgeons, patients and employees in both the spine and related neurotechnology markets.”
Stryker provides products and services in orthopedics, medical and surgical, and neurotechnology and spine segments.