Austin company will be purchased for $1.37 billion

SPJ Reporter Conference
SPJ Reporter Conference

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. provides commenting to allow for constructive discussion on the stories we cover. In order to comment here, you acknowledge you have read and agreed to our Terms of Service. Users who violate these terms, including use of vulgar language or racial slurs, will be banned. Please be respectful of the opinions of others. If you see an inappropriate comment, please flag it for our moderators to review.

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