Globus Medical Inc has approached NuVasive Inc, a U.S. manufacturer of equipment for minimally invasive spine surgery with a market value of $3 billion, with an acquisition offer, people familiar with the matter said.
The potential combination would accelerate consolidation in the spine surgery market, where smaller players are turning to dealmaking to compete against the likes of Johnson & Johnson, Medtronic Plc and Zimmer Biomet Holdings Inc.
Globus, which is a provider of implantable devices and instruments used in spinal and orthopaedic surgeries, made an indicative cash-and-stock offer for NuVasive in recent weeks, the sources said.
The discussions between the companies are preliminary and there is no certainty that a deal will be reached, the sources added, requesting anonymity because the matter is confidential.
NuVasive declined to comment, while a Globus spokesperson did not immediately respond to a request for comment.
NuVasive has struggled with the impact that healthcare staffing shortages and weaker demand for elective surgery have had on its sales since the onset of the COVID-19 pandemic. Its shares are down 2% year-to-date, compared to a 10% rise in the shares of Globus Medical.
Based in San Diego, NuVasive acquired Simplify Medical earlier this year with a $150 million upfront payment to expand its cervical spine technology portfolio.
Source: Reuters.com