Globus Medical and full-spine company NuVasive to merge in $3bn deal
Globus Medical, a US-based musculoskeletal device solutions manufacturer, and NuVasive, a full-spine company, will merge their businesses in an all-stock transaction valued at $3.1 billion.
Founded in 2003, Globus Medical offers solutions products for patients with musculoskeletal disorders.
NuVasive, with annual sales of over $1 billion, caters to surgeons, hospitals, and patients in over 50 countries.
The transaction, with compelling upside revenue potential, is anticipated to accelerate each company’s globalization strategy to target the $50 billion musculoskeletal market.
The parties expect the merger to provide complementary global scale, enhanced customer reach, improved surgeon relationships, as well as inclusive and advanced portfolio in the spine and orthopedics space.
Post-closing, the combined entity will have enhanced operational capabilities through the in-house manufacturing capacity of Globus Medical and the Memphis-based global distribution center of NuVasive.
Dan Scavilla — Globus Medical president and CEO said: “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.
“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.”
The combined company aims to deliver a mid-30% EBITDA profile over the next three years, which includes around $170 million in identified cost synergies.
Post-closing, NuVasive shareholders will own around 28% stake in the combined entity, and Globus Medical shareholders will hold about 72%.
The combined musculoskeletal company will have more than 5,000 employees, with a presence across 50- plus countries.
Anticipated to complete in the middle of 2023, the deal is subject to the approval of both companies’ shareholders, regulatory approval, and other customary closing conditions.