Stryker Corp (NYSE:SYK) said on Thursday it has acquired K2M Group Holdings Inc (NASDAQ:KTWO) for around US$1.4bn, bolstering its presence in the global spinal market.
Under the deal, Stryker will acquire all shares of K2M for US$27.50 per share.
Stryker said in a statement the combined resources of both companies will strengthen its leadership in the orthopedia and neurosurgical spine market which is worth US$10bn around the world.
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Shares of Stryker were trading on Thursday down 0.76% at US$169.96. K2M shares rallied 25.46% to US$27.36.
Oppenheimer analyst Steven Lichtman said the deal should benefit both companies.
"We see KTWO as a good fit for SYK. KTWO provides complementary focus areas including its leading position in 3-D printed implants and strengthens SYK’s position in the deformity market where KTWO is a leading player and has stronger market share compared to its share of the broader spine market," he said.
K2M has annual sales of nearly US$300mln. The company was founded in 2004. The acquisition is expected to close in the fourth quarter of the year.
Stryker is is one of the world`s leading medical technology companies. It is based in Kalamazoo, Michigan.