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ORTHOPEDICS
/
TOTAL
JOINTS
Medtronic adds to
spine business with
$1.64B acquisition
of Mazor: 6 things to
know
By Laura Dyrda
A
er beginning its strategic and equity investment in
Mazor two years ago, Medtronic has begun the process
of fully acquiring the spinal robotics company.
Here are six things to know:
1. Medtronic will acquire all outstanding ordinary shares of
the company for $58.50 per share in cash. e complete trans-
action is expected to total $1.64 billion, or $1.34 billion net of
Medtronic's existing stake in Mazor and cash acquired.
2. Both companies' boards have approved the transaction.
Medtronic expects the transaction to strengthen its posi-
tion in the spine market, and plans to offer a fully integrated
procedural solution for surgical planning, execution and
confirmation.
"Medtronic is committed to accelerating the adoption of
robotic-assisted surgery and transforming spine care through
procedural solutions that integrate implants, biologics and
enabling technologies," said Geoff Martha, executive vice
president and president of the restorative therapies group at
Medtronic.
3. Medtronic first partnered with Mazor in May 2016 on a
multiphased strategic and equity investment. e companies'
strengthened their partnership in August 2017 when Medtron-
ic became the exclusive worldwide distributor of Mazor X,
which has more than 80 installations since its launch. Post-
acquisition, Medtronic aims to advance and accelerate adop-
tion of robotic-assisted surgery in spine.
4. e transaction is expected to close during the third quarter
of Medtronic's fiscal year, which concludes on Jan. 25, 2019.
e acquisition is subject to customary closing conditions, in-
cluding regulatory clearance and Mazor shareholder approval.
5. Medtronic expects the transaction to be modestly dilutive
to the company's fiscal 2019 adjusted earnings per share. How-
ever, Medtronic projects the acquisition will generate a double-
digit return on invested capital by year four and increasing
contributions thereaer.
6. Perella Weinberg Partners and Goldman Sachs & Co., were
the financial advisors to Medtronic, and Meitar Liquornik
Geva Leshem Tal and Ropes & Gray were the legal advisors.
Mazor's financial team included J.P. Morgan Securities and
Duff & Phelps. Kirkland & Ellis and Luchtenstein Levy Wise-
man Law were legal advisors.
"e Mazor team and product portfolio's full integration
into Medtronic will maximize our impact globally through
Medtronic's channels, advance our systems' leadership posi-
tion in the marketplace and drive the realization of our vision
to heal through innovation," said Ori Hadomi, Mazor Robot-
ics' CEO.n
Steadman Clinic, Vail-Summit
Orthopaedics propose 80 to 100K-sq-ft.
surgery center
By Rachel Popa
V
ail (Colo.) Summit Orthopaedics, Vail-based Steadman Clinic,
Vail Health and Breckenridge, Colo.-based Howard Head Sports
Medicine proposed an 80,000 to 100,000 square foot orthopedic
surgery and urgent care center in Dillon, Colo., Summit Daily reported.
Here are the key details to know:
1. The center wouldn't be free-standing. Instead, the new facility would be
located on land adjacent to the Dillon Ridge Marketplace.
2. While the center would be focused on orthopedic surgery, urgent care
services would also be offered.
3. A formal plan for the center is expected to be released soon, with con-
struction starting in mid-2019. n
The Leapfrog Group expands ratings to
include ASCs, will survey 5K+
By Angie Stewart
T
The Leapfrog Group is expanding its reach beyond the inpatient set-
ting and launching a survey to collect ASC safety data.
Here's what you should know:
1. The nonprofit organization plans to collect data on ASC facility informa-
tion, medical and nursing staff, procedure volume and outcomes, patient
safety practices and patient experience through a voluntary survey.
2. Leapfrog will include up to 250 ASCs in the first year of the survey. Leap-
frog will then refine questions and measure specifications based on input
from a panel of physician and nurse experts before opening the survey to
the nation's more than 5,000 ASCs in 2020.
3. Leapfrog is also adding a section for hospital outpatient surgery depart-
ments to its Leapfrog Hospital Survey, which collects safety and quality data
to grade nearly 2,000 hospitals.
4. Leapfrog will publish a national report on the results of both outpatient
datasets by fall 2019. It will publicly report data on individual centers and
departments for the 2020 surveys.
5. ASCs or ASC networks interested in participating in the pilot survey can
visit Leapfrog's online support center.
6. ASCs and HOPDs that take part in the survey will receive benchmarking
reports to use with purchasers and payers.
"The vast majority of surgeries in the U.S. are being performed in outpa-
tient or ambulatory settings, but there's almost no independent data about
the safety and quality of this care," said The Leapfrog Group President and
CEO Leah Binder in a statement. "This leaves patients at risk without the
information they need to select the best place for their care." n
