Medtronic plc announced it has entered into a definitive merger agreement with Mazor Robotics. Medtronic will acquire all outstanding ordinary shares of Mazor Robotics for $58.50 per American depositary share, or $29.25 per ordinary share, in cash, according to a press release.
In total, Medtronic will acquire Mazor Robotics for approximately $1.64 billion, or $1.34 billion net of Medtronic’s existing stake in Mazor and cash acquired. The transaction was approved by the board of directors of both companies. Medtronic intends to offer a fully integrated procedural solution for surgical planning, execution and confirmation by combining Medtronic’s spine implants, navigation and intraoperative imaging technology with Mazor’s robotic-assisted surgery systems.
“Today is a historic day for spine surgery and a defining event in the market’s evolution, and I want to acknowledge and thank all of those whose contribution and faith have been so critical and impactful to our success,” Ori Hadomi, CEO of Mazor Robotics, said in the release. “The Mazor team and product portfolio’s full integration into Medtronic will maximize our impact globally through Medtronic’s channels, advance our systems’ leadership position in the marketplace and drive the realization of our vision to heal through innovation.”
The acquisition is expected to close during Medtronic’s third fiscal quarter, which ends Jan. 25, 2019. This is subject to the approval of Mazor’s shareholders and their satisfaction of customary closing conditions, such as receipt of regulatory clearances. Medtronic anticipates the acquisition will produce a double-digit return on invested capital by 4 years and increase thereafter.