Globus Medical's $3 bln deal for NuVasive to fortify spinal business spooks investors
Adds shares, company, analyst comments
By Raghav Mahobe
Feb 9 (Reuters) -Globus Medical Inc GMED.N said on Thursday it would acquire peer NuVasive Inc NUVA.O in an all-stock deal valued at about $3 billion to build scale in the competitive market for spinal devices.
NuVasive shareholders will receive 0.75 of Globus shares, implying a per-share offer of $57.72 and a premium of about 26% to Wednesday's close.
Shares of Globus Medical fell more than 17%, with analysts raising concerns around deals in spinal device space.
NuVasive traded much lower than the offer price at $46.53.
Similar deals in the spinal device market, such as Stryker SYK.N acquiring K2M Group and several others, have had more revenue "dis-synergies and loss of integration" than other areas of medtech over the years, said Baird analyst Jeffrey Johnson.
There were also some added concerns about how the deal is of value for Globus.
"To double-down on spine is somewhat surprising in our view and adds a lower growth organization," said BTIG analyst Ryan Zimmerman.
The companies said there was minimal overlap among the geographies and customers that they cater to, and the complementary nature of their products makes Nuvasive a good fit for Globus.
"We both have very rich product portfolios to still develop," said Globus Medical Chief Executive Officer Daniel Scavilla.
Through the deal, the Pennsylvania-based company expands its presence in the spine surgery space, where it competes with larger device makers like Johnson & Johnson and Medtronic Plc MDT.N.
Globus, which has been trying to acquire NuVasive since late 2021, said the deal would contribute to its adjusted earnings within a year after close, which is expected in mid-2023.
NuVasive makes implants and provides imaging solutions used in spinal surgeries. The company expects its net sales to increase 7% to 8% in 2023, while Globus estimates its full-year net sales to rise 6% to 8%.
NuVasive shareholders will own about 28% of the combined company, while Globus shareholders will own the rest.
Reporting by Raghav Mahobe in Bengaluru; Editing by Maju Samuel
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
