AUSTIN (KXAN) – British medical technology company Smith & Nephew says it will buy U.S. medical device maker ArthroCare Corp. in a $1.37 billion deal.
Smith & Nephew plans to pay $48.25 in cash for each share of ArthroCare, which is based in Austin, Texas.
That’s a 6 percent premium to its closing price of $45.38 on Friday.
Smith & Nephew PLC says ArthroCare’s expertise in shoulder joint repair will complement its strength in knee repair. It expects the more comprehensive product portfolio to boost revenue.
ArthroCare has nearly 28.4 million shares outstanding, according to FactSet. Smith & Nephew values the deal at $1.5 billion, or $1.7 billion counting ArthroCare’s cash.