Nevro to be Acquired by Globus Medical in a $250 Million Deal
Deal News | Feb 06, 2025 | Globenewswire
Globus Medical, a prominent musculoskeletal solutions company, and Nevro Corp., a global medical device company specializing in chronic pain treatment, have announced a definitive agreement for Globus Medical to acquire Nevro in an all-cash transaction valued at approximately $250 million. Approved by the boards of both companies, the deal involves Globus Medical purchasing Nevro's shares at $5.85 each, representing a premium over Nevro's recent stock prices. Globus Medical aims to expand its market presence and enhance its technologies in neuromodulation and other areas, leveraging its scale to improve Nevro's market penetration and profitability. Nevro welcomes the acquisition, citing enhanced global reach and resources to expand its pain management offerings. The transaction, expected to conclude in the second quarter of 2025, pending regulatory and shareholder approval, involves financial and legal advisories from Morgan Stanley, Wyrick Robbins Yates & Ponton for Globus Medical, and BofA Securities, Latham & Watkins for Nevro.
Sectors
- Healthcare
- Medical Devices
Geography
- United States – Both companies, Globus Medical and Nevro Corp., are based in the United States, operating primarily in Pennsylvania and California, respectively.
Industry
- Healthcare – The transaction involves medical device companies focused on healthcare solutions, specifically in treating chronic pain and musculoskeletal conditions.
- Medical Devices – Both Globus Medical and Nevro Corp. operate within the medical device industry, providing innovative technologies for treatment of chronic medical conditions.
Financials
- $250 million – The total equity value of the Nevro acquisition by Globus Medical.
- $5.85 per share – The cash consideration offered by Globus Medical for each Nevro share in the acquisition.
- 27% premium – Premium over the 90-day volume-weighted average price (VWAP) for Nevro shares.
- 38% premium – Premium over the 30-day VWAP for Nevro shares.
- 17% premium – Premium over Nevro's closing market price on February 5, 2025.
- $2.52 billion – Preliminary 2024 net sales announced by Globus Medical.
- $408 million to $409 million – Preliminary 2024 worldwide revenue announced by Nevro.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Globus Medical | Bidding Company | Company | A leading musculoskeletal solutions company aiming to expand its market and technology footprint through acquisition. |
| Nevro Corp. | Target Company | Company | A global medical device company focused on the treatment of chronic pain through innovative technologies. |
| Morgan Stanley & Co. LLC | Financial Advisor for Globus Medical | Company | Provided financial advisory services for the acquisition deal. |
| Wyrick Robbins Yates & Ponton LLP | Legal Advisor for Globus Medical | Company | Legal advisory for Globus Medical in the acquisition process. |
| BofA Securities, Inc. | Financial Advisor for Nevro | Company | Advised Nevro on financial aspects of the acquisition. |
| Latham & Watkins LLP | Legal Advisor for Nevro | Company | Provided legal counsel to Nevro during the acquisition negotiations. |
| Dan Scavilla | President and CEO of Globus Medical | Person | Overseeing Globus Medical's strategic business activities including the acquisition of Nevro. |
| Kevin Thornal | CEO and President of Nevro | Person | Leading Nevro Corp. through its transition and alignment with Globus Medical. |