K2M Group (KTWO) announced a definitive merger agreement with Stryker (SYK) pursuant to which Stryker has agreed to acquire all of the issued and outstanding shares of common stock of K2M in an all cash transaction for $27.50 per share, or a total equity value of approximately $1.4B. The purchase price represents a 27% premium over K2M’s average closing price during the 90 trading days ended August 29. Upon completion of the proposed transaction, K2M will become a wholly owned subsidiary of Stryker. Post-closing, K2M’s Chairman, CEO, and president Eric Major is expected to be appointed as the president of Stryker’s spine division. The proposed transaction is expected to close late in Q4, subject to customary closing conditions, including approval by K2M’s stockholders and the receipt of certain regulatory approvals. The proposed transaction has been approved by the board of both companies and is not subject to any financing condition.
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