Mazor Robotics stock was flying high Friday on news of a deal with Medtronic (NYSE:MDT).
The deal will have Medtronic acquiring Mazor Robotics (OTCMKTS:MZRTF) for $1.64 billion. It will be doing this by purchasing all outstanding shares of Mazor Robotics stock for $58.50 per American Depository Share, or $29.25 per ordinary share.
Medtronic says that it will be using cash to fund its acquisition of Mazor Robotics stock. It also notes that the deal has the unanimous approval of both companies’ Boards of Directors.
Medtronic notes that it is expecting the acquisition of Mazor Robotics to be dilutive to its earnings per share for fiscal 2019. However, it plans to absorb the dilution due to the current strength of its business.
Medtronic also points out that it is expecting the deal to acquire Mazor Robotics to create double-digit return on invested capital on the fourth year after its completion. It says that it then expects the contribution from Mazor Robotics to continue to increase going forward.
According to Medtronic, it is expecting its deal to acquire all outstanding shares of Mazor Robotics stock to be completed in its fiscal third quarter of 2019. This will have it reaching its close by Jan. 25, 2019.
Medtronic notes that it still needs to complete customary closing conditions before it can close the deal. This includes getting approval from regulators, as well as approval from holders of Mazor Robotics stock.
MZRTF stock was up 22% and MDT stock was down slightly as of noon Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.