Stryker spends $103 million on a pair of acquisitions

November 10, 2009 by MassDevice staff

Kalamazoo, Mich.-based medical device giant buys OtisMed, a custom knee replacement technology company, and aspirator maker Synergetics.

Stryker Corp. spent an estimated $103 million beefing up two of its divisions.

The Kalamazoo, Mich.-based medical device giant said the company will acquire OtisMed Corp., a software company out of Alameda, Calif., that makes computer programs for customizable knee replacements.

Founded in 2005, OtisMed will become a part of Stryker's orthopedic division but maintain its Alameda headquarters. The company said OtisMed's technology will compliment Stryker's Triathlon knee system and other aspects of its implant business.

The acquisition could bolster Stryker's best-performing division. Sales of orthopedic implants rose 5.5 percent during the third quarter, topping $1 billion and helping to offset a 7.7 percent decline in medical and surgical equipment sales.

Stryker also said it plans to buy certain assets of Synergetics USA Inc., namely its Sonopet Ultrasonic Aspirator and the worldwide rights to market and sell it.

The deals, expected close by the end of the calendar year, will cost the company $67 million in upfront payments and an additional $37 million in future milestone and royalty payments. Stryker said its instrument division would absorb the assets from Synergetics.