US-based medical device company Globus Medical has completed its previously announced $3.1bn merger with NuVasive, a medical device maker focused on minimally invasive spine surgery.
The merger combines Globus Medical and NuVasive’s complementary global scale, expands their commercial reach, and comprehensive portfolios in spine and orthopaedics.
Also, it offers an upside revenue potential and a strong financial profile for value creation.
The combined company will provide surgeons and patients with complete musculoskeletal procedural solutions offerings, said the musculoskeletal solutions company.
Globus Medical president and CEO Dan Scavilla said: “We’re thrilled to begin our journey together to create a leading global musculoskeletal company.
“With a relentless focus on changing patient lives, we’re combining our differentiated portfolios and talented teams to reach more customers as we advance spine and orthopaedic care globally.”
Globus Medical is engaged in providing advanced technologies and clinical support to help surgeons and healthcare providers, including comprehensive musculoskeletal solutions.
As part of the transaction, Globus Medical approved the expansion of its board of directors from eight to 11, pursuant to the merger agreement.
Also, three NuVasive board members, John DeFord, Leslie V Norwalk, and Daniel J Wolterman, have been appointed to the Globus Medical board.
NuVasive shareholders will own about 28% and Globus Medical shareholders will own about 72% of the combined company.
David Paul said: “I am pleased to welcome John, Leslie, and Dan to the Globus Board of Directors, and look forward to working with them to build long-term value for our patients, customers, and shareholders.”
Goldman Sachs & Co. served as a financial advisor, and Goodwin Procter and Troutman Pepper as legal counsel to Globus Medical, on the transaction.
BofA Securities served as a financial advisor, and Wachtell, Lipton, Rosen & Katz served as legal counsel to NuVasive.
Globus Medical executive chairman David Paul said: “I’m incredibly proud of the strong legacy we’ve built at Globus Medical, and I look forward to delivering on the many opportunities for our surgeon customers and their patients as a combined company.”
NuVasive former CEO Chris Barry said: “The combination with Globus Medical is highly transformative – bringing together two leading companies with a shared vision to change the lives of more patients around the globe. I look forward to helping the combined organisation transform the future of surgery.”
