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According to a recent news release by the Wall Street Journal, Stryker will acquire rival spine company K2M Group Holdings in a deal valued at approximately $1.4 billion. K2M will become a wholly-owned subsidiary of Stryker, joining their spine division to broaden its current traditional and minimally invasive product offerings.
“Joining Stryker will be a very exciting next chapter for our global team and surgeon customers around the world,” said Chairman, Chief Executive Officer, and President of K2M, Eric D. Major in a press release. “Stryker’s established leadership in the orthopedic and neurosurgical market, combined with K2M’s culture of innovation and leadership in complex spine and minimally invasive solutions, represent a powerful opportunity for Stryker to strengthen its leadership in the $10 billion global spine market”.
Currently, the global spine market is dominated by DePuy Synthes, Medtronic and NuVasive. Collectively, they make up over half of the total market share. Analysts at iData Research do not expect this acquisition to significantly impact Stryker’s relative position within the spinal implants market.
As an example, within the interbody device market, the combined share from the two companies would reach approximately 13%, which is not enough to unseat market leaders Medtronic and DePuy Synthes.
Although Stryker’s market position remains relatively the same, the acquisition of K2M still represents a significant step forward for Stryker. K2M’s addition to Stryker’s strong existing product portfolio allows them to reach a wider range of patients and master new manufacturing technologies.
“This acquisition underscores our commitment to the spinal market, which is the largest segment of Orthopaedics with significant unmet needs,” stated Kevin A. Lobo, Chairman and Chief Executive Officer, Stryker. “We believe K2M will significantly enhance our presence with surgeons, patients and employees in both the spine and related neurotechnology markets.”
The deal is slated to close in the fourth quarter of 2018 and K2M’s Chairman, Eric D. Major, will assume the role of division head for Stryker’s spine division upon its completion.
About iData Research
iData Research (www.idataresearch.com) is an international market research and consulting firm, dedicated to providing the best in business intelligence for the medical device industry. Our research empowers our clients by providing them with the necessary tools to achieve their goals and do it right the first time. iData covers research in: Spinal Implants and VCF, Spinal MIS, Orthopedic Soft Tissue Repair and Regeneration, Orthopedic Trauma, Large & Small Joints, Laparoscopy, Urology, Gynecology, Endoscopy, Dental Operatory Equipment, Dental Material, Dental Lasers, Dental Prosthetics, Dental CAD/CAM, Dental Bone Graft Substitutes, Ultrasound, X-Ray Imaging, Diagnostic Imaging, Oncology, Ophthalmics, Vascular Access, Interventional Cardiology, Cardiac Surgery, Cardiac Rhythm Management, Electrophysiology, Operating Room Equipment, Surgical Microscopes, Robotics and Surgical Navigation, Anesthesiology, Wound Management and more.
We have built a reputation and earned our clients’ trust based on consistent and uniquely intelligent research that allows our customers to make confident decisions and impact their businesses. A combination of market expertise and over a decade of experience has resulted in a deep understanding of the medical device industry that has inspired innovation and propelled our clients to success.