Stryker plans to acquire sister companies Mobius Imaging and Cardan Robotics for $370 million in up-front cash, the company announced Wednesday. An additional $130 million is available upon completion of certain development and commercial milestones.
Stryker will get Mobius’ Airo CT scanner, a mobile diagnostic imaging system. The FDA first granted 510(k) clearance to an earlier version of the system in 2013, adding a pediatric indication to the product last year. Founded in 2015, Cardan RoboTIcs is currently developing robotics and navigation systems for surgical and interventional radiology procedures, Stryker said.
“The acquisition brings Stryker’s Spine division into immediate intraoperative imaging and aligns with Stryker’s implant and navigation products,” the company said in a statement Wednesday.
Stryker follows a string of medical technologies aimed at strengthening its robotic surgery capabilities through acquisitions: Johnson & Johnson bought Auris Health for $3.4 billion, IntuiTIve Surgical joined Schölly FiberopTIc’s robotic endoscopy business, Siemens Healthcare acquired last month Corindus Vascular RoboTIcs.
The acquisition is also the third announced this year by Stryker, which previously acquired chronic rhinitis device maker Arrinex and rotator cuff tear technology company OrthoSpace. Canadian hospital sterilization products maker TSO3 also said last month that it had agreed to be acquired by Stryker. The deal, announced Wednesday, is the second major medical technology exit for Mobius CEO and co-founder Eugene Gregerson, who previously co-founded Breakaway Imaging, which sold its O-arm imaging system to Medtronic in 2007. Surgical navigation system business.
Stryker’s presence in robotics is largely centered on the Mako joint replacement platform for total knee, partial knee and total hip surgery, a technology it acquired through its $1.65 billion acquisition of Mako Surgical in 2013. Stryker said the product The line drove its recent 9.9% increase in net sales in the second quarter. As Zimmer Biomet’s Rosa robotic surgery platform begins to gain a foothold in some of Mako’s featured products, the expansion of other robotic surgery technologies follows.
Neurotechnology and Spine, Stryker’s smallest divisions, posted organic growth of 7.4% last quarter. The company made a major investment in the unit last year with its $1.4 billion acquisition of spinal surgery device maker K2M. The strategy of supporting spinal device sales by enhancing its spinal surgery platform appears to work for at least one competitor; Medtronic reported an increase in its spinal implant sales in the most recent quarter thanks to the adoption of the Mazor robotic surgery platform. Stryker expects the transaction to close in the fourth quarter of 2019 and does not expect to have a material impact on full-year net earnings.