Stryker's decision to acquire Mobius Imaging for $370 million is one of several transactions the company has pursued to bolster its spine division, according to Zacks Equity Research.
Stryker's spine division offers a broad portfolio including interbody devices, radiofrequency ablation products, spine navigation devices and cervical fixation devices.
Five acquisitions Stryker stands to gain from:
Mobius Imaging. Stryker will enter the intraoperative imaging space by acquiring Mobius Imaging for $370 million upfront with up to $130 million of contingent payments. Mobius Imaging's Airo TruCT scanner is expected to be an asset to Stryker's spine division.
K2M. Stryker acquired K2M for $1.4 billion in late 2018. At the time, analysts said the acquisition would help Stryker scale and innovate in the complex spine segment. Zacks Equity Research believes the transaction will be accretive for Stryker's spine division.
Arrinex. Stryker expanded the ENT portfolio within its spine segment with its buyout of Arrinex earlier this year. Arrinex's ClariFix device gave Stryker the opportunity to address a "large, underpenetrated segment of the ENT market," the company said.
HyperBranch Medical Technology. Stryker paid $220 million for HyperBranch Medical and its Adherus AutoSpray, a dural sealant. "The addition of Adherus to our cranial closure portfolio strengthens our position of excellence in the dural repair space and aligns with Stryker's mission of making healthcare better," said Spencer S. Stiles, Stryker's group president of neurotechnology, instruments and spine, when the transaction closed in October 2018.
Invuity. Also in October 2018, Stryker acquired Invuity for a total equity value of about $190 million, a move that was expected to complement Stryker's instruments business. Invuity's single-use lighted instrumentation and enhanced energy products were designed to enhance visualization for orthopedic and spine surgery.
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