Stryker puts up $190m for Invuity

Invuity (NSDQ:IVTY) said today that it agreed to a buyout proposal from Stryker (NYSE:SYK) worth about $190 million in cash.

The $7.40-per-share price is a 28.7% premium over yesterday’s closing price for IVTY shares of $5.75 apiece; news of the pending merger sent the stock up 27.8% to $7.35 apiece this morning in pre-market trading. San Francisco-based Invuity makes single-use surgical instruments and illumination devices.

“The combination of Stryker’s established leadership in minimal access surgery paired with Invuity’s suite of enabling visualization and surgical devices should facilitate better patient outcomes and operating room efficiencies in women’s health, general surgery, electrophysiology and orthopedics,” interim CEO Scott Flora said in prepared remarks. “It is with this in mind that Invuity’s Board of Directors voted to recommend this transaction to Invuity’s stockholders.”

“Invuity’s innovative products in the single-use lighted instrumentation and hybrid energy markets provide best in class illumination and help make surgery safer,” added Stryker neurotechnology, instruments and spine president Spencer Stiles. “I look forward to the work we will do together to advance Stryker’s mission of making healthcare better.”

The deal is slated to close during the fourth quarter, Invuity said. Moelis & Co. is financial advisor to Invuity, with legal advice from Wilson Sonsini Goodrich & Rosati.

Kalamazoo, Mich.-based Stryker said the deal is expected to be immaterial to net earnings this year. It’s the second acquisition for the orthopedics giant since late last month, when  it announced the $1.4 billion buyout of K2M (NSDQ:KTWO).

The post Stryker puts up $190m for Invuity appeared first on MassDevice.

from MassDevice https://ift.tt/2OaoBQu