Stryker has agreed to acquire Novadaq, which specializes in fluorescence imaging systems with the goal of improving quality of care and reducing healthcare costs, for $701 million.
Novadaq’s Spy Imaging Systems are CE-marked and cleared in the U.S. and Canada. The Spy Elite device allows surgeons conducting open procedures, such as cardiothoracic surgery and gastrointestinal surgery, to visualize blood flow and tissue perfusion in real time.
The Mississauga, Canada-based company also markets a hand-held version of the Spy system, as well as an endoscopic version for minimally invasive procedures.
"This acquisition aligns with Stryker's focus on enabling our customers to see and do more by enhancing cross-specialty surgical visualization," said Timothy Scannell, president of the MedSurg and NeuroTechnology group at Stryker, in a statement. "Novadaq's unique innovative technology complements Stryker's advanced imaging portfolio and expands our product offerings into open and plastic reconstructive surgery.”
Novadaq is Stryker’s first acquisition in 2017, following a strong 2016. Last year, the company acquired U.K.-based Stanmore Implants for £35.6 million ($45.5 million), disposable device maker Sage Products for $2.8 billion and Physio Control, which makes defibrillators and CPR-assist devices, for $1.3 billion.
Also in 2016, the devicemaker bolstered its neurology and spine units with a pair of tuck-in deals. It acquired Synergetics’ neuro portfolio and Becton Dickinson’s vertebral compression fracture products at a time where its neurotechnology group was faring well and its spine unit was struggling. While Stryker’s spine business still showed “softness” in Q1 2017, CEO Kevin Lobo said on an earnings call that he expects it to “improve over the course of the year.”