|Stryker CEO Kevin Lobo|
The deal: Stryker grabs Mako Surgical
The price tag: $1.7 billion
Why it matters: Kalamazoo, MI-based Stryker ($SYK) gets to expand its orthopedic offerings into new areas, gaining Mako's Restoris knee implants and its Rio system, a robot-assisted surgical device used for orthopedic surgical procedures. Rio was the big get, however, considering that CEO Kevin Lobo has had an eye on robotic-assisted surgery for joint reconstruction for some time. He has touted the merger as being able to simplify the procedure and be better for patients. Additionally, Stryker gains a revenue stream even as it tries to deal with expenses stemming from a 2012 recall of its Rejuvenate and ABG II metal hips, among other issues. Stryker wanted Mako so badly that its $1.7 billion buy reflects an 86% premium on the company's stock before news of the deal initially broke in September.