New medtech M&A to transform the spine market

MedTech News: A new M&A is set to bring together two medical technology companies in the musculoskeletal sector.

Globus Medical will acquire NuVasive for $3.1 billion, the biggest orthopaedics deal since Stryker announced its purchase of Wright Medical for $5.4 billion in 2019.

Nuvasive specialises in spinal technology and imaging technology used for procedures like cervical disc arthroplasty and lateral fusion. Globus is stronger in robotics and imaging. The new company will be the second-largest spine business behind Medtronic and ahead of Johnson & Johnson’s DePuy Synthes, with about 21% of the global market share, according to analysts.

As there is a sizeable product overlap between the two groups, cost-cutting is on the cards with Globus stating its plans for $170 million in synergies within three years.

“This transaction reflects our mission to become the leading musculoskeletal technology company in the world by developing products that promote healing in patients with musculoskeletal disorders,” said Dan Scavilla, president and chief executive officer of Globus Medical.

“With NuVasive, we can help support more patients through leading innovation and expanding our commercial reach to provide superior service to our surgeon and hospital partners. We look forward to combining the NuVasive and Globus Medical teams to capitalise on the many opportunities to improve patient care and create sustainable shareholder value.”

Once the combination is complete, Globus’ shareholders will own about 72% of the resulting company and NuVasive’s will retain the remaining 28% share.

“Our combination with Globus Medical is transformative, joining two companies with highly complementary capabilities, geographic footprints and customer bases,” said Chris Barry, chief executive officer of NuVasive.

“Together, we will be able to offer an exceptional portfolio of clinically proven solutions, supported by strong commercial and surgeon education teams. The new company will be well-positioned to deliver value creation for shareholders, further support our surgeon partners—and most importantly, change the lives of more patients.”

The combined company will have a presence in 50 countries with more than 5,000 employees. The merger is expected to close by mid-2023. 

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