Happy holidays, Mako shareholders: Stryker to close $1.7B buyout Dec. 17

Stryker CEO Kevin Lobo

Stryker ($SYK) wants Mako Surgical badly, so much so that it offered up to $1.7 billion for the Fort Lauderdale, FL, outfit, an 86% premium for the company's stock before news of the deal came out in September. With such a rich offer, how could Mako's shareholders say no? They didn't, and voted recently to approve the sale, which will close on Dec. 17.

That's a nice holiday bonus for Mako's shareholders, who will get $30 per share in cash once the merger closes. It will also be a happy end of the year for Stryker, too. The Kalamazoo, MI, orthopedic device giant gets access to Mako's Restoris knee implants and its Rio system, a robot-assisted surgical device used for orthopedic procedures. Thanks to Rio, Mako has also experienced pretty robust growth, producing $102.7 million in revenue during 2012, 22% higher than the previous year (though sales may not climb much in 2013).

Stryker CEO Kevin Lobo has an eye on robotic-assisted surgery for joint reconstruction, and has said that the combination should help simplify the procedure and be better for patients.

Stryker could use the new revenue stream, too. The company continues to deal with expenses relating to a massive recall in 2012 of its Rejuvenate and ABGII metal hips. As of October, the fallout has cost the company $700 million, and it has weighted down net earnings like a stone.

In October, Stryker also put major SEC bribery allegations behind it. While not admitting any wrongdoing, the company agreed to pay $13.2 million to settle charges that it bribed healthcare professionals and government officials to gain business in Argentina, Greece, Mexico, Poland and Romania.

- read the Mako release

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