Stryker Corp to acquire Orthovita for $316m
Michigan-based medical technology company Stryker Corporation (NYSE:SYK) has agreed to buy Orthovita (NASDAQ:VITA), a company that make specialty spine and orthopedic products, in a deal worth $316 million.
"This transaction delivers significant value to our shareholders and allows us to combine our portfolio of orthobiologic and biosurgery products as well as our novel and unique proprietary biomaterials pipeline with Stryker's industry-leading sales and marketing teams," said Orthovita president and CEO Antony Koblish.
The $3.85-per-share deal represents a 41% premium to Orthovita's closing price on Friday. As of 12:25pm EST on Monday, shares were up more than 40% to trade at $3.83.
Under the deals terms, Stryker will begin an all-cash tender offer to purchase all the outstanding common stock of Orthovita within 10 business days.
Malvern, Pennsylvania-based Orthovita has a portfolio of orthobiologic products for the fusion, regeneration and fixation of human bone, as well as biosurgery products for controlling intra-operative bleeding.
The deal, which is subject to closing conditions is expected to be completed in the second quarter. Shareholders representing approximately 14.5% of Orthovita have already committed to tender their shares in the offer.
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