Stryker
(NYSE:SYK) today said it is acquiring Wright Medical (NSDQ:WMGI) for $4.7 billion in cash.
Through the agreement, Stryker will pay $30.75 per share and will acquire all of the issues and outstanding ordinary shares of Wright Medical for an equity value of $4.7 billion. With outstanding convertible notes, total enterprise value is set at $5.4 billion.
The acquisition is expected to close in the second half of 2020.
“We believe this transaction will provide truly unique opportunities and will create significant value for our shareholders, customers and employees. By merging our complementary strengths and collective resources, we will be able to advance our broad platform of extremities and biologics technologies with one of the world’s leading medical technology companies that shares our vision of delivering breakthrough and innovative solutions to improve patient outcomes,” president and CEO of Wright Medical Robert Palmisano said in a news release. “In addition, our employees will be afforded the opportunity to be part of one of the world’s best workplaces with greater depth of resources for sustained success in our industry. We look forward to working with Stryker to complete this transaction. Our board of directors believe this acquisition is in the best interests of our shareholders, employees and other stakeholders and has unanimously voted to recommend that Wright shareholders vote in favor of it.”
Wright Medical develops medical devices for the upper extremities, lower extremities and biologics markets. The company made more than $836 million in sales in 2018 with sales approaching $1 billion this year.
“This acquisition enhances our global market position in trauma and extremities, providing significant opportunities to advance innovation, improve outcomes and reach more patients,” Stryker CEO Kevin Lobo said. “Wright has built a successful business and we look forward to welcoming their team to Stryker.”
