MAKO sold for $1.65b

Stryker offered $1.65b for MAKO, to acquire it completely. (Previously MAKO had acquired Acrobot, its arch-competitor.)
 "Founded in 2004, MAKO is a pioneer in robotic assisted orthopedic surgery technologies, including its Robotic Arm Interactive Orthopedic System and flagship MAKOplasty Partial Knee Resurfacing procedure. MAKO recently expanded its product offering to include the MAKOplasty Total Hip Arthroplasty, a new robotic arm application for hip replacements. 
 Stryker's acquisition values MAKO Surgical shares at $1.65 billion in cash, or about an 85% premium to the company's closing share price on Tuesday. The acquisition may prove to be a big boost to the credibility of makers of controversial robotic medical equipment. It also may prove painful for short-sellers who have piled into short positions in the shares of MAKO and Intuitive Surgical, given lingering questions about the safety of medical robots.
MAKO is among the most shorted stocks on the Nasdaq with  about 22% of MAKO's outstanding shares sold short as of September 13."

"The transaction must still be approved by Mako shareholders. Stryker said that the acquisition will likely shave about 10 to 12 cents per share in adjusted earnings during the first full year. The deal is anticipated to be neutral to its earnings in the second year and add to earnings after that."

Source: NewsOK, The Street


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