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Globus Medical and NuVasive announce merger

por John R. Fischer, Senior Reporter | February 20, 2023
Business Affairs
NuVasive and Globus Medical are merging together.
Globus Medical and NuVasive have inked a deal to merge, bringing their spinal and orthopedic solutions to musculoskeletal providers and patients in over 50 countries worldwide.

Founded in 2003, Globus Medical designs surgical, imaging and implant technology for spinal muscle and joint care. NuVasive also designs surgical solutions for spinal care.

The two say they will be able to equip more surgeons across new geographic areas with more solutions, driving long-term growth and entering new markets.

They also expect to expand their manufacturing capacity with operational advantages like Globus Medical’s in-house capacity and NuVasive’s global distribution network, including its global Memphis-based distribution center.

"Our combination with Globus Medical is transformative, joining two companies with highly complementary capabilities, geographic footprints and customer bases," said Chris Barry, chief executive officer of NuVasive.

Finances
The integration will focus on continuing sales and implementing innovations, retaining critical talent and combining growth and cost synergies.

The all-stock transaction will award 0.75 of a share of Globus Medical Class A common stock to NuVasive shareholders for each share of common NuVasive stock they have when the transaction closes. The implied share price for NuVasive would be an equity value of $3.1 billion.

This will leave Globus Medical shareholders with approximately 72% of the combined company on a fully diluted basis, and 28% with NuVasive. NuVasive will also utilize Globus Medical’s financial rigor and discipline to achieve a mid-30% EBITDA over the next three years, including approximately $170 million in identified cost synergies.

For 2023, Globus Medical expects to see 7% to 8% net sales growth, and NuVasive, 6% to 8%.

Leadership
Together, the two will have over 5,000 employees and an eleven-member board, composed of all eight Globus Medical board directors and three from NuVasive's board.

This includes David Paul, chairman of the Globus Medical board of directors, in the same position; Dan Scavilla, president and chief executive officer of Globus Medical, also as chief executive officer and a member of the board; Keith Pfeil, chief financial officer of Globus Medical, in the same position; and Chris Barry, chief executive officer of NuVasive, supporting integration planning for the combined company.

"With NuVasive, we can help support more patients through leading innovation and expanding our commercial reach to provide superior service to our surgeon and hospital partners,” said Scavilla.

The transaction is expected to be completed by the middle of 2023.

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