Globus Medical (a leading musculoskeletal solutions company) and Nevro (a global medical device company that delivers comprehensive and life-changing solutions for the treatment of chronic pain) announced they have entered into a definitive agreement for Globus Medical to acquire all shares of Nevro in an all-cash deal.
Under the terms of the deal, which was unanimously approved by the boards of directors of both companies, Globus Medical will acquire all shares of Nevro for $5.85 per share. The deal represents a total equity value of approximately $250 million.
The $5.85 per share consideration represented a 27% premium to the 90-day volume-weighted average price (VWAP) of $4.61, a 38% premium to the 30-day VWAP of $4.23, and a 17% premium to Nevro’s closing market price on February 5, 2025. The deal is expected to close late in the second quarter of 2025, subject to the approval of Nevro’s shareholders, regulatory approval, and other customary closing conditions.
On January 8, 2025, Globus Medical announced preliminary 2024 net sales of $2.52 billion, an increase of 60.6% over the prior year on an as-reported basis. On January 13, 2025, Nevro announced preliminary 2024 worldwide revenue of $408 million to $409 million.
Globus Medical expects the Nevro deal to be accretive to its earnings in the second year of operation.
Globus Medical’s financial advisor is Morgan Stanley and Wyrick Robbins Yates & Ponton is serving as legal advisor. Nevro’s financial advisor is BofA Securities and Latham & Watkins is serving as legal advisor.
KEY QUOTES:
“This transaction furthers our mission to become the preeminent musculoskeletal technology company in the world by enabling us to expand into new markets for future growth, while gaining access to world-class, differentiated technologies that can provide significant benefit in neuromodulation, enabling technologies, and future implant solutions. We believe our size and operational capabilities will accelerate market penetration of Nevro’s technology and bring much needed and clinically superior relief to patients suffering from chronic pain. In addition, our scale and operational discipline will allow us to optimize Nevro’s financial performance to drive enhanced profitability and create long-term value moving ahead.”
- Dan Scavilla, President and CEO of Globus Medical
“We are thrilled to join Globus Medical as this will allow us to reach more patients globally with clinically proven, innovative products that significantly reduce the burden of chronic pain. Through Globus Medical’s capabilities, global infrastructure and other resources, we will be better positioned to achieve our full potential to become a broader and more diversified leader in the pain management space.”
• ⁃ Kevin Thornal, Nevro’s CEO and President
