Globus Medical Inc (NYSE: GMED) and NuVasive Inc (NASDAQ: NUVA) have agreed to combine in an all-stock transaction, bringing together two technology companies to accelerate globalization strategy to target the $50 billion musculoskeletal market.
Together, Globus Medical and NuVasive will have a presence in more than 50 countries with more than 5,000 employees.
Each NuVasive share will be exchanged for 0.75 of Globus Medical share.
NuVasive has an implied value of $57.72/share and an equity value of $3.1 billion.
Following the close of the transaction in mid-2023, NuVasive shareholders will own approximately 28% of the combined company, and Globus Medical shareholders will own approximately 72% on a fully diluted basis.
The company will leverage Globus Medical’s financial rigor and discipline as it aims to deliver a mid-30-percent EBITDA profile over the next three years, which includes approximately $170 million in identified cost synergies.
The company will have an eleven-member board composed of all eight directors from Globus Medical’s board and three from NuVasive’s board.
David Paul, Chairman of the Globus Medical board, will serve as Chairman of the combined company’s board.
Dan Scavilla will serve as CEO, and Keith Pfeil, CFO of Globus Medical, will serve as CFO of the combined company.
For FY22, Globus Medical announces preliminary 2022 net sales growth of 6.8% Y/Y as reported, 8.2% constant currency.
NuVasive announces preliminary 2022 net sales growth of 5.5% as reported, 8.5% constant currency, as compared to net sales of $1,139.0 million for the full year 2021.
For FY23, Globus Medical expects net sales growth of 7%ꟷ8% constant currency, and NuVasive expects 2023 net sales growth of 6%ꟷ8% constant currency.
Price Action: GMED shares are down 15.60% at $64.97, and NUVA shares are up 2.66% at $47 during the premarket session on the last check Thursday.
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This article Globus Medical-NuVasive Deal To Accelerate Globalization Strategy, Target $50B Musculoskeletal Market originally appeared on Benzinga.com
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Source: https://finance.yahoo.com/news/globus-medical-nuvasive-deal-accelerate-135420657.html