Globus Medical, a leading musculoskeletal solutions company, has announced its acquisition of Nevro Corp, a global medical device company, in an all-cash transaction valued at approximately $250 million. This move aims to expand treatment options for patients, particularly in the area of chronic pain management.
The acquisition comes on the heels of both companies announcing their preliminary full-year 2024 revenue outlook. Globus Medical reported a significant increase in net sales, reaching $2.52 billion, marking a 60.6% rise over the previous year. On the other hand, Nevro's preliminary 2024 worldwide revenue ranged between $408 million to $409 million.
Looking ahead, Globus Medical reaffirms its guidance for 2025 net sales of $2.66 billion to $2.69 billion, with fully diluted non-GAAP earnings per share projected to fall within the range of $3.40 to $3.50. Following the acquisition, the company anticipates its 2025 net sales to increase to $2.80 billion to $2.90 billion, with fully diluted non-GAAP earnings per share ranging between $3.10 to $3.40.
The acquisition is expected to be accretive to Globus Medical's earnings in the second year of operation, signaling a positive outlook for the company's future performance.
Globus Medical's financial advisor for the acquisition is Morgan Stanley & Co. LLC, while Wyrick Robbins Yates & Ponton LLP is serving as its legal advisor. Meanwhile, Nevro's financial advisor is BofA Securities, Inc., and Latham & Watkins LLP is its legal advisor.
With Globus Medical's mission to become a preeminent musculoskeletal technology company and Nevro's focus on providing comprehensive, life-changing solutions for chronic pain, this acquisition sets the stage for significant advancements in the medical device industry. Following these announcements, the company's shares moved 1.2%, and are now trading at a price of $89.05. Check out the company's full 8-K submission here.
