Globus Medical (NYSE:GMED) announced today that it agreed to acquire chronic pain treatment developer Nevro (NYSE:NVRO).
Audobon, Pennsylvania-based Globus agreed to acquire all shares of Nevro in an all-cash transaction. Under the terms of the agreement, it plans to pay $5.85 per share, with the deal’s total equity value reaching approximately $250 million.
Redwood City, California-based Nevro develops implantable spinal cord stimulation (SCS) technology. It also offers sacroiliac (SI) joint fusion platforms. The company’s HFX iQ SCS system utilizes AI, high-frequency (10 kHz) therapy and ongoing cloud insights to deliver personalized pain relief.
Seeing increased competition from Medtronic and its Inceptiv device, Nevro announced in August 2024 that it was looking into potential partnerships, mergers or even a sale of the company. The company said as recently as last month that it remained in ongoing discussions to explore strategic options. CEO and President Kevin Thornal said in a news release that joining Globus Medical allows Nevro to reach more patients globally.
“Through Globus Medical’s capabilities, global infrastructure and other resources, we will be better positioned to achieve our full potential to become a broader and more diversified leader in the pain management space,” Thornal said.
Globus Medical, an orthopedic and surgical robotic technology developer, believes the acquisition further strengthens its foothold in the musculoskeletal technology space.
“This transaction furthers our mission to become the preeminent musculoskeletal technology company in the world by enabling us to expand into new markets for future growth, while gaining access to world-class, differentiated technologies that can provide significant benefit in neuromodulation, enabling technologies, and future implant solutions. We believe our size and operational capabilities will accelerate market penetration of Nevro’s technology and bring much needed and clinically superior relief to patients suffering from chronic pain,” said Dan Scavilla, President and CEO of Globus Medical.
More about Globus Medical’s planned acquisition of Nevro
The companies expect the deal to close late in the second quarter of 2025. The $5.85 per share consideration represents a 27% premium on the 90-day volume-weighted average price (VWAP) of $4.61 of Nevro’s common stock.
It also marks a 38% premium to the 30-day VWAP of $4.23, and a 17% premium to Nevro’s closing market price on Feb. 5, 2025.
Globus Medical reaffirmed its guidance for 2025 2025 net sales to total between $2.66 billion and $2.69 billion on a standalone basis. It anticipates adjusted earnings per share to range between $3.40 and $3.50. Following the acquisition, it expects sales between $2.80 billion and $2.90 billion and adjusted EPS between $3.10 and $3.40.
The company expects the acquisition to have an accretive impact to earnings in the second year of operation.
“Our scale and operational discipline will allow us to optimize Nevro’s financial performance to drive enhanced profitability and create long-term value moving ahead,” Scavilla said.
