Medtronic completes acquisition of Mazor Robotics


Medtronic today announced it has completed the acquisition of Mazor Robotics. The total value of the transaction is reported at US$1.7 billion, or US$1.3 billion net of Medtronic’s existing stake in Mazor and cash acquired.

Under the terms of the acquisition agreement announced on 20 September 20, 2018, Mazor shareholders will receive US$58.50 per American Depository Share, or US$29.25 per ordinary share, in cash. The transaction ranks among the largest orthopaedic deals completed in 2018.

Medtronic believes robotic-assisted surgery can play a transformative role in refining procedures, reducing variability and impacting procedural outcomes in spine surgery. The Mazor X(TM) Stealth Edition—a co-development effort between Mazor and Medtronic—was recently cleared by the FDA.

This new system incorporates StealthStation(TM) software into the Mazor(TM) X robotic-assisted surgery platform—leveraging the power of two industry-leading technologies to deliver procedural predictability and flexibility through real-time image guidance, visualisation and navigation informed by interactive 3D planning and information systems.

“Everything that happens in the operating room depends on the trained medical professionals who are there, and that will never change. However, the Mazor X Stealth Edition gives us a tool to plan our desired surgical procedure and help make sure the surgery takes place exactly as planned with a high degree of accuracy,” commented Christopher R Good, spine surgeon, director of Scoliosis & Spinal Deformity and president of Virginia Spine Institute.

He continued: “Incorporating multiple modalities together, including computerised surgical planning, three-dimensional assessment of spinal anatomy, robotic guidance and live navigation feedback all in one platform leads to a synergy that makes my operating room much smarter.”

The transaction is expected to be modestly dilutive to Medtronic’s fiscal 2019 adjusted earnings per share, but given the current strength of Medtronic’s business, the company expects to absorb the dilution. Consistent with its long-term financial objectives, Medtronic projects the acquisition to generate a double-digit return on invested capital (ROIC) by year four, with an increasing contribution thereafter.


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