Medtronic entered into an agreement to acquire Medicrea, a spine device company that includes artificial intelligence, predictive modeling and patient-specific implant offerings.
Six things to know:
1. The two companies signed a tender offer agreement for Medtronic to acquire Medicrea's outstanding shares in a friendly voluntary all-cash tender offer for around $8 per share.
2. Both companies' boards of directors approved the transaction.
3. The offer of $8.01 per share is 22 percent more than the closing price of Medicrea shares on July 14 and 33 percent over the one-month volume weighted average price of Medicrea shares. The offer is 56 percent of the three-month volume-weighted average price of Medicrea shares.
4. Medtronic aims to grow its presence in the enabling technologies and spine markets. The company already has a portfolio of spinal implants, robotic and navigation technology as well as 3D imaging solutions. Medicrea's data analytics, artificial intelligence and personalized implants will integrate with Medtronic's procedural solutions.
5. The transaction is expected to close by the end of 2020 and be immaterial to Medtronic's adjusted earnings per share for the first two fiscal years after the acquisition.
6. BofA Securities and Societe Generale are the financial advisers for Medtronic, and DLA Piper is the company's legal adviser. Medicrea's acting financial adviser is Cowen, and its legal adviser is Baker McKenzie.
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