Mako, to be acquired by Stryker, itself makes a small buy

Mako Surgical ($MAKO) is making an acquisition of its own, even as the Florida maker of robotic surgical devices itself is slated to be snatched up by Stryker for $1.7 billion.

Mako said it will pay $2.5 million and issue more than 3.9 million unregistered shares of common stock to buy Pipeline Biomedical Holdings, a New Jersey maker of orthopedic devices and instruments for both robotic and regular surgical procedures.

The sale cements a partnership that has been in place since 2010, focused on the development of Mako's Rio robotic-arm orthopedic surgical devices. It will also be a quick transaction, with an expected Oct. 4, 2013, closing date.

Orthopedic device maker Stryker ($SYK) announced Sept. 25 that it planned to grab Mako, though investor reaction has been pretty stunted, driving the company's stock price down more than 4%. Part of its concern has involved Mako's projected future sales growth. But Stryker CEO Kevin Lobo said that the combination will propel Mako's sales and Stryker overall to greater success.

Mako booked $102.7 million in revenue during 2012, a 22% increase compared to 2011, though slower growth is expected this year. Its little acquisition can at least help boost its position as far as technology IP before Stryker fully takes over.

- read the release

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