US Dublin-based med-tech company Medtronic plc (LSE: MDT) has acquired Mazor Robotics Ltd. (Nasdaq: MZOR) (TASE:MZOR) for $1.6 billion. This is the largest amount ever paid for an Israeli company in the medical sector, beating the $1.1 billion that Mitsubishi Tanabe Pharma paid for Neuroderm last year. Based in Caesarea, Mazor develops robotic guidance systems for spinal surgery.
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 of Medtronic's existing stake in Mazor, and cash acquired. This is an 11% premium on the company's closing share price yesterday. The board of directors of both companies have approved the deal.
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."
Mazor was founded in 2001 based on technology developed by Moshe Shoham, a mechanical engineer from the Technion, Israel Institute of Technology in Haifa. Almost since its inception, the company has been led by Hadomi. The company held its IPO on the TASE in 2007 and struggled to take off, having a market cap of just NIS 60 million in 2011. Since 2016, Mazor's lead product has been marketed by Medtronic, initially not exclusively but more recently exclusively after Medtronic bought an 11% stake in Mazor last year.
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. The 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."
Published by Globes [online], Israel business news - www.globes-online.com - on September 21, 2018
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