Globus Medical to expand into pain management with Nevro acquisition

Globus Medical, Inc., a global leader in musculoskeletal solutions headquartered in Audubon, Pennsylvania, has entered into a definitive agreement to acquire Nevro Corp., a Redwood City, California-based medical device company specialising in chronic pain management. The all-cash transaction, unanimously approved by the boards of directors of both companies, is valued at approximately $250 million, with Globus Medical offering $5.85 per share for all outstanding shares of Nevro. This acquisition represents a strategic move for Globus Medical, as it seeks to diversify its portfolio beyond traditional musculoskeletal technologies and strengthen its presence in the growing chronic pain treatment market. The deal is expected to accelerate Globus Medical’s growth by integrating Nevro’s advanced neuromodulation technologies and expanding access to innovative therapies for patients worldwide.

Why is Globus Medical acquiring Nevro Corp.?

The acquisition aligns with Globus Medical’s long-term strategy to become a dominant player in musculoskeletal technologies while capitalising on emerging opportunities within the neuromodulation market. Nevro’s expertise in spinal cord stimulation (SCS) and chronic pain treatment solutions complements Globus Medical’s existing portfolio, providing an opportunity to address a broader spectrum of patient needs. Dan Scavilla, President and CEO of Globus Medical, emphasised that the acquisition would enable the company to expand into new markets, gain access to differentiated technologies, and deliver life-changing medical innovations. Scavilla believes that the company’s operational scale and financial discipline will optimise Nevro’s performance, enhancing both profitability and long-term shareholder value.

The acquisition also offers Globus Medical the chance to leverage Nevro’s unique technological capabilities to drive future growth. By combining Nevro’s neuromodulation expertise with Globus Medical’s existing infrastructure and resources, the company aims to strengthen its position as a global leader in musculoskeletal and chronic pain treatment solutions. The strategic synergy between the two companies is expected to result in increased market penetration, improved operational efficiency, and accelerated development of innovative therapies.

How will the acquisition impact the chronic pain treatment market?

The chronic pain treatment market is experiencing significant growth, driven by the rising prevalence of conditions such as painful diabetic neuropathy, chronic sacroiliac joint pain, and other complex musculoskeletal disorders. Nevro Corp.’s comprehensive HFX spinal cord stimulation platform, including the Senza SCS system, has set new benchmarks for patient outcomes in this space. With its advanced technologies designed to deliver superior pain relief, Nevro has established itself as a key player in the field of neuromodulation.

By acquiring Nevro, Globus Medical gains access to cutting-edge chronic pain treatment solutions that are transforming patient care globally. This strategic move will enable Globus Medical to broaden its therapeutic offerings, expand its presence in the pain management market, and reach a larger patient population. Kevin Thornal, President and CEO of Nevro Corp., expressed optimism about the acquisition, stating that the partnership with Globus Medical would enhance Nevro’s ability to deliver innovative therapies to patients worldwide. Thornal highlighted that Globus Medical’s global infrastructure, operational capabilities, and financial strength would play a critical role in accelerating the adoption of Nevro’s technologies and driving growth in the chronic pain treatment segment.

The acquisition also reflects a broader trend in the healthcare industry, where companies are increasingly pursuing strategic mergers and acquisitions to drive innovation, expand their product offerings, and improve patient outcomes. By combining their expertise, Globus Medical and Nevro are well-positioned to lead the way in developing next-generation solutions for chronic pain management.

What are the financial details of the Globus Medical-Nevro deal?

Under the terms of the agreement, Globus Medical will acquire all outstanding shares of Nevro for $5.85 per share, representing a significant premium over Nevro’s recent trading prices. This price reflects a 27% premium to Nevro’s 90-day volume-weighted average price (VWAP) of $4.61, a 38% premium to the 30-day VWAP of $4.23, and a 17% premium compared to Nevro’s closing price on February 5, 2025. The transaction, expected to close in the second quarter of 2025, is subject to approval by Nevro’s shareholders, regulatory clearances, and other customary closing conditions.

Both companies have expressed confidence that the deal will deliver strong financial benefits. Globus Medical anticipates that its operational efficiencies, combined with Nevro’s innovative product portfolio, will drive long-term value creation. The acquisition is also expected to enhance Globus Medical’s revenue growth and profitability by expanding its presence in high-growth markets and optimising Nevro’s financial performance.

How will the acquisition affect Globus Medical’s financial outlook?

Globus Medical reported strong preliminary financial results for 2024, with net sales reaching $2.52 billion, marking a 60.6% increase compared to the prior year. The company has reaffirmed its 2025 standalone revenue guidance, projecting net sales between $2.66 billion and $2.69 billion, with fully diluted non-GAAP earnings per share ranging from $3.40 to $3.50. Following the completion of the Nevro acquisition, Globus Medical expects consolidated 2025 net sales to range from $2.80 billion to $2.90 billion, with earnings per share projected between $3.10 and $3.40. The company anticipates that the acquisition will be accretive to earnings beginning in the second year of combined operations.

Nevro, meanwhile, announced preliminary 2024 worldwide revenue of approximately $408 million to $409 million. In light of the pending transaction, Nevro will not hold an earnings conference call when it reports its full-year financial results on March 4, 2025. This decision reflects the company’s focus on facilitating a smooth transition as it prepares to integrate with Globus Medical.

What’s next for Globus Medical and Nevro?

Globus Medical is scheduled to release its full 2024 financial results and provide an updated outlook for 2025 during its earnings announcement on February 20, 2025. Both companies will continue to operate independently until the transaction closes, with integration planning underway to ensure a seamless transition. The focus will be on maintaining business continuity, supporting employees, and delivering high-quality care to patients throughout the integration process.

Financial advisors for the transaction include Morgan Stanley & Co. LLC, serving as Globus Medical’s financial advisor, and BofA Securities, Inc., acting as Nevro Corp.’s financial advisor. Legal counsel is provided by Wyrick Robbins Yates & Ponton LLP for Globus Medical and Latham & Watkins LLP for Nevro. The completion of the acquisition will mark a significant milestone for both companies, reinforcing their commitment to innovation, growth, and improving patient outcomes in the field of chronic pain treatment.

As the deal progresses, the healthcare industry will closely monitor its impact on the competitive landscape, particularly in the areas of neuromodulation and chronic pain management. The integration of Globus Medical and Nevro is expected to create new opportunities for growth, innovation, and improved patient care, positioning the combined company as a global leader in musculoskeletal and chronic pain treatment solutions.