Medtronics buys Kyphon - Acquisiton delivers full spectrum of services for minimally invasive spinal solutions

Here is a post for my Medical friends...

Medtronics recenlty made a move to buy Kyphon, based in Sunnyvale California. Kyphon develops, manufactures and sells minimally invasive spinal solutions. The good news is that board members on both sides of the deal agreed to the transaction.

Medtronics CEO Art Collins was quoted as saying;
"We expect our combination with Kyphon to help accelerate the growth of Medtronic's existing spinal business by extending our product offerings into some of the fastest growing product segments and enabling us to provide physicians with a broader range of therapies for use at all stages of the care continuum,"

Medtronic's spinal surgery focus is on providing treatment options for younger patients who are suffering from degenerative disc disease in the cervical /lumbar spine and scoliosis. While Kyphon's speciality is based around treating older patients suffering from spinal stenosis and vertebral compression fractures.

Both companies have excellent synergy specializing in minimally invasive and highly effective treatments for spinal surgery. This acquisiton reflects the full service spoectrum for both younger and older patients.

As far as the details of the deal - Medtronic's reportedly agreed to a whopping 32 percent premium over Kyphon's closing stock price on July 26 - which was $53.68. When compared to the Kyphon's 30-day average trading price Medtronics was at 35% premium of $52.76 per share.