Stryker Acquires Invuity for $190 Million to Expand Minimally Invasive Visualization Portfolio

VCBeat (WeChat: vcbeat) has learned that on October 23, 2018, local time, orthopedic giant Stryker announced the completion of its acquisition of Invuity for $190 million. Meanwhile, Invuity’s disposable visualization surgical instruments for minimally invasive procedures have been incorporated into Stryker’s product portfolio. Previously, the two parties had announced their acquisition agreement on September 11.

Under the terms of the transaction, Stryker completed the acquisition at a price of $7.40 per share, representing a 28.7% premium over IVTY’s closing stock price of $5.75 on September 10, the day before the transaction was announced.

Image source: Invuity official website

Invuity is a manufacturer specializing in surgical lighting, holding a leadership position in the fields of advanced photonics and disposable visual surgical devices. Its surgical illumination products include retractors, handheld devices, and insertable instruments. Last month, the company launched its latest product, PhotonGuide Adapt, a medical device featuring a flexible illuminator and compatible retractor, specifically designed for gynecologic surgeons.

Invuity’s product portfolio is typically dominated by high-cost equipment, yet this has not slowed the company’s growth. Analysts have stated, “We believe that despite Invuity’s smaller scale, its ability to maintain premium pricing stems from hospitals and surgeons perceiving its products as uniquely differentiated from competitors.”

“Stryker’s leadership in minimally invasive surgery, combined with Invuity’s visual surgical devices, helps improve surgical outcomes and efficiency in women’s health, general surgery, electrophysiology, and orthopedics,” said Scott Flora, Interim CEO of Invuity.

This transaction is also part of Stryker’s recent acquisition spree. Previously, in June and August of this year, Stryker signed acquisition agreements with Boston Scientific, one of the largest medical device companies based in Minnesota, USA, and K2M, a global leader in complex spine and minimally invasive solutions.

However, Stryker representatives had previously stated that the transaction was not expected to have a significant impact on the company’s net earnings.

Stryker Corporation, founded in 1941, is one of the world’s largest orthopedic and medical technology companies. Headquartered in Kalamazoo, Michigan, USA, it operates 14 manufacturing, R&D, and sales divisions worldwide and employs more than 16,000 people.

Its product portfolio encompasses joint replacement, trauma, craniomaxillofacial, spine, surgical equipment, neurosurgery, otolaryngology, interventional pain management, minimally invasive surgery, navigated surgery, smart operating rooms and network communications, biotechnology, medical beds, and emergency stretchers. In 2016, its orthopedics business (orthopedics and spine) generated revenue of $5.176 billion, ranking third globally in the orthopedics sector. Due to its strong performance, Stryker was recognized by the renowned U.S. magazines Fortune and BusinessWeek as a Fortune 500 company and one of the Top 50 Healthcare Companies in the United States.

Stryker enjoys an excellent clinical reputation in the Chinese market. In recent years, it has been highly active in the global capital markets, continuously acquiring medical device manufacturers to expand its product portfolio and market share, reflecting its positive outlook on the future of the global medical equipment market.

Invuity, founded in 2004 and headquartered in San Francisco, California, is a medical technology company. Invuity specializes in the development and marketing of advanced photonic devices to enhance surgeons’ ability to illuminate and visualize the surgical field during open, minimally invasive, and laparoscopic procedures. The company’s patented Intelligent Photonics™ technology improves surgical precision, efficiency, and safety by providing superior visualization capabilities. Clinical applications span women’s health, general surgery, electrophysiology, and plastic surgery, among others.