Globus Medical, a musculoskeletal solutions company, is acquiring NuVasive, a medical services company focused on spine technology innovation, in a deal valued at $3.1 billion.
The deal brings together two companies targeting the $50 billion musculoskeletal market, including spine, orthopedics, enabling technology, power tools, biologics and more. The combined company will have a presence in more than 50 countries and more than 5,000 employees.
"This transaction reflects our mission to become the leading musculoskeletal technology company in the world by developing products that promote healing in patients with musculoskeletal disorders," Dan Scavilla, president and CEO of Globus Medical, said in a statement. "With NuVasive, we can help support more patients through leading innovation and expanding our commercial reach to provide superior service to our surgeon and hospital partners. We look forward to combining the NuVasive and Globus Medical teams to capitalize on the many opportunities to improve patient care and create sustainable shareholder value."
The deal comes nearly a year after former CEO Dave Demski resigned as leader of Globus Medical.
Globus Medical will acquire NuVasive at a share price of $57.72. NuVasive shareholders will receive 0.75 of a share of Globus Medical Class A common stock for each share of NuVasive common stock under terms of the deal. When closed, NuVasive shareholders will own approximately 28% of the combined company, and Globus Medical shareholders will own the remaining 72%.
Once finalized, the combined company will have 11 members of the board, including eight directors from Globus Medical's board and three directors from NuVasive's board. David Paul, chairman of the Globus Medical board of directors, will continue to serve as chairman of the board of the new company, while Dan Scavilla will serve as CEO and board member; Keith Pfeil will serve as CFO of the combined company; and Chris Barry, CEO of NuVasive, will support integration planning of the combined company.
The deal is expected to close in the middle of 2023, subject to regulatory approval, approval of both companies' shareholders and other customary closing conditions.
"Our combination with Globus Medical is transformative, joining two companies with highly complementary capabilities, geographic footprints and customer bases," Barry said. "Together, we will be able to offer an exceptional portfolio of clinically proven solutions, supported by strong commercial and surgeon education teams. The new company will be well-positioned to deliver value creation for shareholders, further support our surgeon partners—and most importantly, change the lives of more patients."