Global Medical eyes acquisition of spinal implant maker NuVasive-sources

NuVasive

15/11/2021 18:11

By Greg Roumeliotis
    Nov 15 (Reuters) - Globus Medical Inc  GMED.N  has
approached NuVasive Inc  NUVA.O , a U.S. manufacturer of
equipment for minimally invasive spine surgery with a market
value of $3 billion, with an acquisition offer, people familiar
with the matter said.
    The potential combination would accelerate consolidation in
the spine surgery market, where smaller players are turning to
dealmaking to compete against the likes of Johnson & Johnson
 JNJ.N , Medtronic Plc  MDT.N  and Zimmer Biomet Holdings Inc
 ZBH.N . 
    Globus, which is a provider of implantable devices and
instruments used in spinal and orthopedic surgeries, made an
indicative cash-and-stock offer for NuVasive in recent weeks,
the sources said.
    The discussions between the companies are preliminary and
there is no certainty that that a deal will be reached, the
sources added, requesting anonymity because the matter is
confidential.
    NuVasive declined to comment, while a Globus spokesperson
did not immediately respond to a request for comment.
    NuVasive has struggled with the impact that healthcare
staffing shortages and weaker demand for elective surgery have
had on its sales since the onset of the COVID-19 pandemic. Its
shares are down 2% year-to-date, compared to a 10% rise in the
shares of Globus Medical. 
    Based in San Diego, NuVasive acquired Simplify Medical
earlier this year with a $150 million upfront payment to expand
its cervical spine technology portfolio. 

 (Reporting by Greg Roumeliotis in New York)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))