Mako has already paid out $2.5 million in cash to Pipeline and will issue nearly 4 million shares of MAKO stock to seal the deal. At yesterday’s $29.55 close, that represents about $116.8 million, according to a press release.
Pipeline has made implants for Mako’s Rio surgical robot system since 2010, according to the release, including its Restoris PST cup and the tapered stem hip implant used in the Makoplasty total hip arthroplasty procedure. The deal is expected to close by Oct. 4, Mako said.
Last week, Stryker agreed to pay $30 per share for Mako in a deal worth some $1.7 billion. The provision for that deal included the issuance of another roughly 4 million Mako shares, presumably to consummate the Pipeline deal. Mako, founded in 2004, pushed robotic surgery into the orthopedics space with its Rio device and technologies for knee and hip replacement surgery. The $30-per-share price Kalamazoo, Mich.-based Stryker agreed to represents an 85.5% premium over Mako’s $16.17 closing price the day before the deal was announced.