Kalamazoo, MI-based Stryker Corporation will buy all of the common stock of Orthovita, a specialty spine and orthopedic company, for $3.85 per share, representing a total value of roughly $316 million, the devicemakers announced this morning. The deal also includes $12 million in debt, MarketWatch notes.
Orthovita, which is based in Malvern, PA, competes in the $5 billion orthobiologics market with its Vitoss bone graft substitute. It also competes in the vertebral augmentation market with its Cortoss bone augmentation material, Stryker notes in a release.
"With this acquisition we are meaningfully expanding our orthobiologics product portfolio and strengthening our competitive position in key segments of the Spine, Orthopaedics and Biosurgery markets," says Stephen MacMillan, Stryker's chairman, president and CEO. "We believe the collective talent of our sizable sales forces across multiple franchises positions us to build on Orthovita's success and accelerate sales growth."
Orthovita's shares surged premarket, while Stryker was inactive and closed Friday at $63.28, as MarketWatch notes.
Last month, Stryker reported that its Q1 2011 reported net earnings decreased 4.4 percent to $307 million from $322 million during the same period last year. However, the company also saw its net sales grow to $2.02 billion, representing a 12 percent increase over net sales of $1.80 billion recorded in Q1 2010.
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