Stryker will buy competitor Orthovita for $304M
Orthopedic implant and surgical products maker Stryker Corp. says it has agreed to buy rival Orthovita Inc. for about $304 million in cash.
Stryker is offering $3.85 per share, a premium of 41 percent from Orthovita's closing price Friday. It will also assume $12 million in debt held by Orthovita.
Stryker, of Kalamazoo, Mich., reported $7.32 billion in revenue in 2010. Orthovita, based in Malvern, Pa., had $95 million in revenue.
Orthovita's products include Vitoss bone graft and Cortoss bone augmentation material. It also sells Vitagel, which is designed to reduce bleeding.
Stryker will start an offer for Orthovita shares within 10 days, and it expects the deal to close during the second quarter.
Shares of Orthovita closed at $2.73 Friday and have traded between $1.60 and $3.54 in the last year.