Medtech business acquires orthopaedic specialist in deal worth up to £100m
Hull-based medical technology business, Smith+Nephew, is acquiring Engage Surgical, owner of the only cementless partial knee system commercially available in the US.
The cost of the deal is up to $135m/£100m contingent on sales performance. It is designed to support Smith+Nephew’s strategy for growth by transforming its business through innovation and acquisition, while also providing differentiation for customers.
The partial knee market is currently worth about $300m in the US and is expected to grow faster than the total knee market and by around 4% per annum through 2029.
Randy Kilburn, executive vice president and general manager, reconstruction, robotics and digital at Smith+Nephew, said: “We’re now the only medical device company offering both cemented and cementless partial knee implants in the US, as well as robotics-assistance through the CORI Surgical System that is well-suited for the precise alignment needed.
“Through our Sports Medicine franchise we have an established, strong position in ambulatory surgery centres where the vast majority of partial knees in the US are performed.”
The acquisition will drive Smith+Nephew’s Robotics and Real Intelligence strategy. Partial knee procedures are well-matched for robotics due to the need for precise alignment.
Engage Surgical’s Partial Knee System also complements Smith+Nephew’s focus on serving the growing outpatient market.
Dan Justin, chief executive officer at Florida-based Engage Surgical, said: “We’re excited about joining Smith+Nephew to help expand the impact of the Engage Surgical Partial Knee System and integrating it with the CORI Surgical System.
“Smith+Nephew is well suited and well prepared to continue our mission of providing better outcomes for knee arthroplasty patients.”
The acquisition is being financed from existing cash and debt facilities.