US Dublin-based company Medtronic has acquired Israeli surgical robotics company Mazor Robotics for $1.64 billion, the companies said in a statement Thursday.
This is the largest amount ever paid for an Israeli company in the medical sector. In the previous big acquisition last year Mitsubishi Tanabe Pharma paid for Neurodermbeating $1.1 billion.
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Since 2016, Mazor’s lead product Mazor’s Mazor X robotic surgery guidance system has been marketed by Medtronic. The acquisition comes following Medtronic bought an 11% stake in Mazor last year.
Medtronic will pay $58.50 per American Depository Share, or $29.25 (NIS 104.80) per ordinary share, in cash, for a total of $1.64 billion, or $1.34 billion net for the remainder of the American Depository shares and regular shares of the Nasdaq-traded company, and cash acquired.
This is an 11% premium on Mazor’s share price at Thursday’s market close. The deal is expected to close by the end of January 2019, the companies said.
Founded in 2001 by Moshe Shoham, a mechanical engineer from the Technion, Mazor develops robotic guidance systems for spinal surgery. In 2007 Mazor held its IPO on Tel Aviv Stock Exchange (TASE). having a market cap of just NIS 60 million in 2011.
Mazor CEO Ori Hadomi said, “Today is a historic day for spine surgery and a defining event in the market’s evolution, and I want to acknowledge and thank all of those whose contribution and faith have been so critical and impactful to our success. The Mazor team and product portfolio’s full integration into Medtronic will maximize our impact globally through Medtronic’s channels, advance our systems’ leadership position in the marketplace, and drive the realization of our vision to heal through innovation.”
Medtronic EVP and president Restoratative Therapies Group Geoff Martha said,”We believe robotic-assisted procedures are the future of spine surgery, and provide surgeons a more precise, repeatable, and controlled ability to perform complex procedures. Medtronic is committed to accelerating the adoption of robotic-assisted surgery and transforming spine care through procedural solutions that integrate implants, biologics and enabling technologies,” said Geoff Martha , executive vice president and president of the Restorative TherapiThe acquisition of Mazor adds robotic-assisted guidance systems to our expanding portfolio of enabling technologies, and we intend to further cultivate Mazor’s legacy of innovation in surgical robotics with the site and team in Israel as a base for future growth.”