Mako Surgical (NSDQ:MAKO) cleared a hurdle on the way to its $1.65 billion buyout by Stryker (NYSE:SYK) when its shareholders approved the acquisition last week.
About 65% of the robotic surgery company’s shareholders voted on the $30-per-share deal, with 99% voting to approve the transaction, according to a press release. The stock owners also gave their non-binding OK for "specified compensation payable to the company’s named executive officers in connection with the merger," Mako said.
The deal is expected to close tomorrow, according to the release.
News of the deal, announced Sept. 25, sent shares prices up for other robotic surgery firms including industry leader Intuitive Surgical (NSDQ:ISRG).
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 shares’ $16.17 closing price yesterday.
"Mako has established a compelling technology platform in robotic assisted surgery which we believe has considerable long term potential in joint reconstruction," Stryker president & CEO Kevin Lobo said at the time. "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. Our combined expertise offers the potential to simplify joint reconstruction procedures, reduce variability and enhance the surgeon and patient experience. We look forward to welcoming the Mako team to Stryker."
"The combination of Stryker’s established industry leadership with Mako’s innovative products and people contains the power to positively transform orthopedics," added Mako president & CEO Dr. Maurice Ferré. "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."
Stryker said the deal is forecast to hit adjusted earnings per share by 10¢-12¢ during the first year, excluding costs related to the acquisition.
Apart from the boost for Mako’s stock, news of the deal boosted rival Intuitive Surgical’s shares by 1.5%, to $369.36 each as of about 9:50 a.m. Sept. 25. Shares of Hansen Medical (NSDQ:HNSN) were up 16.1% to $1.87 apiece by then, with Accuray‘s (NSDQ:ARAY) stock climbing 1.7% to $7.11 per share.
SYK shares were trading at $69.64 apiece, down 1.6%. Stryker’s rivals in the orthopedics space also suffered; shares of Zimmer (NYSE:ZMH) were down 1.2% to $82.59 apiece, Johnson & Johnson (NYSE:JNJ) saw its share price dip 0.2% to $88.05. Smith & Nephew (NYSE:SNN) stock ticked up 0.3% to $61.82.
