Stryker Corporation Acquires Invuity, Inc. For $190m

Stryker Corporation, a $12.44b maker of Orthopedics, MedSurg, Neurotechnology and Spine products is acquiring Invuity, Inc, a manufacturer of photonics and single-use, lighted retractor instruments for open surgery. Invuity's retractor-based lights provides direct visualization of surgical cavities during open minimally invasive and minimal access procedures. Invuity's topline has grown by more than 20% last year, with gross margins in the high 60% to low 70% range. Deal value $190m, on sales of $39.6m(4.8x) and negative EBITDA of $28.74m due to Invuity's large sales and marketing expense. Stryker can be expected to prune these and other expenses.

Keywords: Healthcare Investment Banking, Healthcare M&A, Healthcare mergers