Stryker announced plans this morning to acquire Invuity, Inc. for $190 million, or $7.40 per share, representing an approximately 30% premium to last close and a 4.5x multiple of sales. Invuity makes single-use lighted instruments that will complement Stryker’s surgical equipment and instruments business, and this transaction marks the latest in a wave of M&A activity that picked up last month in the midst of what had been a relatively quiet year.
It’s not just Stryker (who also acquired K2M this month in this period’s biggest deal, expanding their spine business). Since the very end of August, there have been five acquisitions greater than $100 million in value. The combined value of these deals is approximately $2.8 billion in market value, as shown below.
Strategic acquirers in the medical device space have cash-rich balance sheets, and this current activity reflects opportunity as well continued strategic focus on differentiating product portfolios through innovative acquisitions. Notably, the average multiple on these transactions was more than 8.6x prior trailing-12-month sales.