By Emily Wasserman
Greatbatch ($GB) is snatching up Lake Region Medical for $1.73 billion to beef up its offerings and expand its global reach, months after the company announced it would spin off its neurostimulation unit to focus on building out its portfolio.
Under the terms of the deal, Frisco, TX-based Greatbatch will shell out about $478 million in cash, issue 5.1 million shares of common stock and options to Lake Region Medical’s shareholders. Taking the assumption of about $1 billion debt into account, the deal is valued at about $1.73 billion, the company said in a statement. The acquisition will hand Greatbatch an 83.4% share of the combined company, giving it access to Lake Region Medical’s advanced surgical, vascular and interventional cardiology offerings.
Both companies’ boards of directors have already signed off on the deal. If all goes to plan, Greatbatch and Lake Region Medical will close the acquisition in the fourth quarter of 2015, the companies said in a statement, creating a combined company with $1.5 billion in 2014 revenues and more than 9,000 employees worldwide.