Medtronic to Acquire Mazor Robotics for $1.64 Billion
Posted on September 21, 2018 by Medtech[y] Staff
Medtronic and Mazor entered into a multi-phased relationship in 2016 under a strategic and equity investment agreement. In less than a year, Medtronic expanded the partnership to become the exclusive worldwide distributor of the Mazor X system, leading to the successful installation of more than 80 Mazor X systems since launch.
An acquisition seemed logical as both companies clearly benefited from the relationship. Medtronic was able to integrate new technology into their struggling spine business and Mazor was able to leverage the partnership to scale their business throughout the world in a much shorter period of time than they would have on their own.
Earlier this evening, Medtronic finally made the acquisition official, announcing that they are acquiring Mazor for $1.64 billion.
Here are four additional things to know -
1. The timing is solid as NASS (North American Spine Society) is in Los Angeles next week. With the two companies already scheduled to launch their new Mazor X Stealth Edition at the meeting, this deal will do nothing but provide confidence to surgeons and hospital administrators who are considering Mazor's technology.
Nothing screams confidence to a hospital administrator more than a small company getting acquired by a major medical device organization. Think contracting power and the long term potential to be included in Medtronic's Integrated Health Solutions.
2. Medtronic's acquisition of Mazor strengthens Medtronic's position as a global leader in enabling technologies for spine surgery, and drives Mazor Robotics' vision to bring its core technology to the forefront of the global market. Mazor's proprietary core platform technology, including the Mazor X Robotic Guidance System (Mazor X), and the Renaissance Surgical-Guidance System (Renaissance), are transforming spinal surgery from freehand procedures to accurate, state-of-the-art, guided procedures. By combining Medtronic's market-leading spine implants, navigation, and intra-operative imaging technology with Mazor's robotic-assisted surgery (RAS) systems, Medtronic intends to offer a fully-integrated procedural solution for surgical planning, execution and confirmation.
3. "Today is a historic day for spine surgery and a defining event in the market's evolution, and I want to acknowledge and thank all of those whose contribution and faith have been so critical and impactful to our success," said Ori Hadomi, CEO of Mazor Robotics. "The Mazor team and product portfolio's full integration into Medtronic will maximize our impact globally through Medtronic's channels, advance our systems' leadership position in the marketplace, and drive the realization of our vision to heal through innovation.
4. "We believe robotic-assisted procedures are the future of spine surgery, enhancing surgeons' abilities to perform complex procedures with greater precision, consistency and control. Medtronic is committed to accelerating the adoption of robotic-assisted surgery and transforming spine care through procedural solutions that integrate implants, biologics and enabling technologies," said Geoff Martha, executive vice president and president of the Restorative Therapies Group at Medtronic. "The acquisition of Mazor adds robotic-assisted guidance systems to our expanding portfolio of enabling technologies, and we intend to further cultivate Mazor's legacy of innovation in surgical robotics with the site and team in Israel as a base for future growth."
What is Mazor X?
The acquisition is expected to close during Medtronic's third fiscal quarter ending January 25, 2019.