Medtronic plc (MDT) has agreed to buy Mazor Robotics for $1.64 billion. The all-cash deal, which amounts to $29.25 per ordinary share, is expected to close in Q3 2019. The deal has been approved by the boards of both companies and is subject to approval from shareholders and regulatory agencies.
Medtronic expects the deal to be modestly dilutive to fiscal year 2019 adjusted EPS and to generate a double-digit return on invested capital by year four, with an increasing contribution thereafter. Medtronic and Mazor have been partners for the past two years with the former holding an existing 11% stake in Mazor.
Mazor manufactures robotic-assisted guidance systems for surgeries and the company’s Mazor X and Renaissance systems are being used in several countries worldwide. Medtronic expects Mazor’s guidance systems to be a significant addition to its portfolio of products and hopes the deal will open up new opportunities in the surgical space.
Last month Medtronic reported first quarter results that topped analyst expectations. The company saw its highest revenue growth in emerging markets and non-US markets while revenues in the US dropped 4% year-over-year. The company also raised its sales outlook for the full year of 2019.
Medtronic stock is up 20% thus far this year and looking at the past three months, the stock is up 12%. The stock was trading down slightly at $97.20 as of 1:35 pm ET.
Tyson Foods Inc. (NYSE: TSN) reported first quarter 2023 earnings results today. Sales rose 2.5% year-over-year to $13.2 billion. Net income attributable to Tyson was $316 million, or $0.88 per
Apple Inc. (NASDAQ: AAPL) this week reported its first revenue decline in more than three years, even as the high inflation continues to squeeze customers’ spending power. Sales of the
Chipmaker Qualcomm, Inc. (NASDAQ: QCOM) has reported lower earnings and revenues for the first quarter of 2023. The company also provided guidance for the second quarter of 2023. At $9.5