Medtronic is acquiring full ownership of Israeli company Mazor Robotics in a $ 1.6 billion deal, the two companies announced overnight.
The deal gives Robotics a value of $ 1.6 billion, and after deducting the shares it has acquired from Medtronic in Mazor to date, it will pay $ 1.34 billion.
Mazor Robotics Israel, managed by Uri Hadomi, was founded in 2001 and develops robotic guidance systems for spine surgery. The company has more than 200 different systems, and holds more than 50 patents worldwide.
Since Mazor was founded, it has lost over $ 100 million. In the first half of 2018, the company lost $ 5 million. The company has developed a system that allows the surgeon to accurately locate instruments or implants in spinal surgery according to his early plan. Mazor's system significantly reduces invasiveness in spinal surgery.
Medtronic, whose offices are in Dublin, is one of the largest medical equipment companies in the world. Medtronic employs more than 86,000 people worldwide and provides services to doctors, hospitals and patients in 150 countries.
The deal has already been approved by the boards of directors of the two companies, unanimously, according to the companies' announcement. In Tel Aviv, Mazor shares rose 7% yesterday without notice.
Since May 2016, the company's leading product has been marketed by Medtronic, first exclusively and today exclusively, and Medtronic also invested in Mazor until it gradually reached an 11% holding in the company. Mazor has announced that it will develop additional robotic products that are not in the backbone field and will be marketed independently in order to preserve the company's independence, but received a key offer from Medtronic and decided to sell.
Mazor's revenues in 2017 were $ 64 million, 78% higher than in 2016. The sharp growth stemmed from the transfer of marketing to Medtronic and the launch of a new product by both companies. In 2018, Medtronic and Masor entered the second phase of the marketing agreement between them, in which Medtronic markets Mazor's products exclusively. As a result of the transition, the sharp growth in Masor's revenues moderated as its profit margins on each handset declined, and although the company warned in advance that this would be the case - a more moderate increase in revenues but also an improvement in overall profitability due to a decrease in marketing expenses. When the second quarter report saw a slight drop in revenues, the company lost 20% to its share price, and Mazor reached the price that was convenient for Medtronic and offered her the offer.
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