Stryker Corp announces the acquisition of Entellus Medical Inc for $662mn
Entellus Medical, Inc has agreed to a definitive merger agreement with Stryker Corporation, with an equity value of $662mn. The Entellus Board of Directors unanimously approved entering into the agreement.
With $11.325bn in annual sales in 2016 alone, Stryker has become a Fortune 500 company, specialised in new, innovative medical technologies. Housing over 40 manufacturing and research and development locations on a global scale, the business continually looks at ways to boost its scalability in the production of new products or via mergers and acquisitions (M&A).
The deal with Entellus will see the business grow its Ear, Nose and Throat (ENT) division. The company went public in 2015 after growing its operations since 2006. Its XpRESS products have seen it gain up to $75mn in 2016, according to the company’s annual report. Nonetheless, the business has lost over $3bn in sales in the same year.
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“Entellus is a leader in the ENT segment and offers a comprehensive portfolio of products that enable physicians to conveniently and comfortably perform a broad range of ENT procedures,” explained Timothy J. Scannell, Group President, MedSurg and Neurotechnology at Stryker.
“The combination of Stryker’s established commitment to making healthcare better and Entellus’ innovative products within the ENT segment will continue to provide our customers the tools they need for cost effective solutions,” said Robert S. White, President and Chief Executive Officer of Entellus Medical. “I look forward to the additional progress we will make together.”
News of the merger has seen Entellus shares rise significantly, yet the agreement is still subject to regulatory approval.