Two long-standing makers of implants and surgical tools for orthopedic procedures are set to combine into a single musculoskeletal device powerhouse.
NuVasive and Globus Medical announced their plans to merge in a joint press release Thursday. Under the terms of the all-stock deal, NuVasive shareholders will receive 0.75 of a Globus share for each of their NuVasive holdings. That values each share of NuVasive stock at about $57.72 and adds up to a total equity value of $3.1 billion for the merger.
The price tag represents a premium of more than 20% over NuVasive’s trading price, which hasn’t cracked the $50 mark since mid-August 2022. In the month leading up to the deal’s announcement, it maxed out around $48 per share. Wednesday, the day before the merger was announced, NuVasive’s stock closed at $45.78. When the merger plans went public Thursday morning, NuVasive’s share price briefly shot back up past the 30-day high, but settled down closer to $47 by the end of the day.
The deal hit Globus’ stock harder, though. After spending the preceding month hovering around an average of $75, the company’s share price plummeted 18% on Thursday morning, then continued to slip throughout the day, ultimately closing at $63.
Once the combination is complete, Globus’ shareholders will own about 72% of the resulting company, and NuVasive’s will retain the remaining 28% share.