The US-based medical technologies firm, Stryker, has announced plans to purchase K2M Group Holdings for $1.4bn, Med Tech Drive reports.
K2M, a manufacturer of products used in spinal surgery, generate annual sales of approximately $300mn and will help to enhance Stryker’s earnings in the $10bn spinal market.
It is anticipated that K2M’s co-founder and CEO, Eric Major, will join Stryker as president of the spine division and is expected to head up the combined business.
Stryker confirmed that the current spine division president, Bradley Paddock, will see his role switched to Major and he will be responsible for helping with the integration of the two businesses.
In a press release, Kevin Lobo, Stryker CEO, said: “This acquisition underscores our commitment to the spinal market, which is the largest segment of orthopaedics with significant unmet needs.”
“We believe K2M will significantly enhance our presence with surgeons, patients and employees in both the spine and related neurotechnology markets.”
Stryker’s purchase of K2M enables the firm to increase its spinal offering with the company planning to retain K2M’s sales force in a bid to reduce disruption.
The medical technologies company confirmed the deal is anticipated to be completed by the end of 2018 and have an immaterial impact on the year’s results.