Medtronic announced plans to acquire Mazor Robotics, the robotic spine platform in which they’ve held a stake since 2016, for a total of $1.6 billion in cash. Net of the prior $300 million investment in Mazor, Medtronic will pay a total of $1.3 billion to acquire the rest of the company. The transaction is valued at approximately 17x estimated 2019 sales.
Mazor is an Israeli company that developed the Mazor X Robotic Guidance System and the Renaissance Surgical-Guidance System. In their press release, Medtronic described how these robot-assisted technologies are complementary to Medtronic’s spinal implants, navigation and intra-operative imaging technology, enabling the company to “offer a fully-integrated procedural solution for surgical planning, execution and confirmation.” Medtronic and Mazor will preview their integrated offering at the upcoming NASS (North American Spine Society) Annual Meeting, which will be held September 26-29 in Los Angeles.
The acquisition is expected to close during Medtronic’s fiscal third quarter, ending January 25, 2019.