Globus Medical’s world is about to get a little bigger, as the orthopedic devicemaker moves to acquire Nevro and its neuromodulation platforms for treating chronic pain.
The all-cash deal comes to a total equity value of about $250 million. With Globus paying $5.85 for each of Nevro’s outstanding shares, that amounts to a 27% premium over a 90-day weighted average, or a 38% bonus over the past 30-odd days.
“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,” Nevro President and CEO Kevin Thornal said in a statement. The two companies predicted the deal will close late in this year’s second quarter.
Globus aims to add Nevro’s portfolio—with its spinal cord stimulator implants for chronic pain, including diabetic neuropathy—alongside its lines of 3D-printed and expandable spine implants and accompanying robotic surgical systems, plus its offerings in orthopedic trauma and joint reconstruction.
“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,” said Globus President and CEO Dan Scavilla. “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.”
In early 2023, Globus announced a $3.1 billion plan to absorb the spine specialist NuVasive, with the goal of targeting a $50 billion musculoskeletal market.
At the top of this year, Globus posted 2024 net sales of $2.52 billion, for a 60.6% gain over the year prior, in a preliminary earnings report. The company’s full annual accounting is scheduled for February 20.
Nevro, meanwhile, is set to report its full-year finances on March 4, though in light of the acquisition announcement, it said it will forego its conference call with investors and will not provide guidance for 2025. In its own early peek at results, during January’s J.P. Morgan Health Care Conference, Nevro estimated about $408.5 million in 2024 worldwide revenue.
In late 2023, Nevro moved to acquire the neurostimulation developer Vyrsa Technologies in a deal worth up to $75 million. Shortly thereafter, Nevro laid off about 5% of its workforce to help balance out the costs.