Everything to know about Stryker & K2M $1.4B deal

Spinal Tech

Stryker first announced its plans to acquire minimally invasive spine company K2M for $1.4 billion in August.

The 27 percent premium deal is designed to make K2M a wholly owned subsidiary of Stryker. Per the agreement, K2M Chairman, CEO and President Eric Major is expected to become president of the Stryker spine division. With original plans to close the deal in the fourth quarter, Stryker did not anticipate issues would arise with the closing.

However, a few K2M shareholders filed a suit Oct. 12 to block the merger. The shareholders alleged the merger statement failed to include information used to calculate key financial metrics they needed to know prior to voting on the deal. The lawsuit also claimed the transaction undervalued K2M.

After the lawsuit, Stryker decided to file to extend its anti-trust deadline. Stryker pushed the anti-monopoly waiting period to Nov. 16.

Stryker also filed updated financial features with the Security and Exchange Commission. By doing so, K2M shareholders settled the ongoing litigation with Stryker. In the Oct. 22 settlement, K2M said it, "believes that the actions are without merit and that no further disclosure is required."

As of Nov. 7, K2M shareholders approved the $1.4 billion acquisition. 

Now, with approval from the U.S. Federal Trade Commission, Stryker and K2M plan to finalize the $1.4 billion merger Nov. 9, keeping the deal on its fourth quarter completion schedule. 

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