US medical device maker Stryker Corp to buy Mako Surgical for $1.65 bn

US medical equipment maker Stryker Corp today struck a $1.65-billion deal to buy Mako Surgical Corp in order to get its smaller peer's technology on robot-assisted orthopaedic surgery.

"Mako has established a compelling technology platform in robotic assisted surgery which we believe has considerable long term potential in joint reconstruction," said Kevin Lobo, president and CEO of Stryker.

"The acquisition of Mako combined with Stryker's strong history in joint reconstruction, capital equipment and surgical instruments will help further advance the growth of robotic assisted surgery," he added.

Michigan-based Stryker is offering to pay $30 per share in cash, an 86 per cent premium to Mako's Tuesday closing price.

Founded in 2004, Mako has pioneered advances of robotic-assisted surgery in orthopaedics.

The Florida-based company currently markets the Rio Robotic Arm Interactive Orthopedic System and Restoris family of implants to enable its flagship Makoplasty Partial Knee Resurfacing procedure for the treatment of early to mid stage osteoarthritis. 

More recently, Mako expanded its product offering to include the Makoplasty Total Hip Arthroplasty, a new robotic arm application for patients in need of a total hip replacement.

The Makoplasty solution incorporates technologies from its intellectual property portfolio that has more than 300 US and foreign, owned and licensed, patents and patent applications.

"The combination of Stryker's established industry leadership with Mako's innovative products and people contains the power to positively transform orthopedics," said Maurice Ferré, M.D., president and CEO of Mako.

Founded by Dr. Homer Stryker as the Orthopedic Frame company in 1946, Stryker is one of the world's leading medical technology companies offering a diverse array of innovative medical technologies including reconstructive implants, medical and surgical equipment, and neurotechnology and spine products.

Stryker competes with DePuy Orthopaedics, Zimmer Holdings, Medtronic, Synthes, Smith & Nephew, and Biomet, and holds a 16-per cent share in the global orthopaedic market.

The company sells its products through local dealers and direct sales force to doctors, hospitals, and other healthcare facilities, as well as through third-party dealers and distributors primarily in the US, Ireland, Germany, France, Switzerland, the UK, Japan, Canada, the Pacific region, and Latin America.

Stryker posted net profit of $1.3 billion in 2012 on revenues of $8.7 billion, and has a market cap of $26.8 billion.