Smith & Nephew (LON:SN) has wrapped up the acquisition of the Brainlab orthopaedic joint reconstruction business, the blue-chip company has said. The move came after the artificial hips and knees maker recently inked a deal to buy NASDAQ-listed Osiris Therapeutics for $660 million in cash.
Smith & Nephew’s share price has been subdued in London this morning, having shed 0.48 percent to 1,656.00p as of 08:06 BST. The stock, however, is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.82 percent lower at 7,103.02 points. The group’s shares have added more than 21 percent of their value over the past year, as compared with about a seven-percent fall in the Footsie.
S&N wraps up Brainlab deal
Smith & Nephew announced in a statement this morning that it had completed the acquisition of the Brainlab orthopaedic joint reconstruction business. The blue-chip group said that the acquisition supported its strategy to invest in technologies which further its digital surgery and robotic ecosystem.
Smith & Nephew noted that its initial priority will be to integrate the Brainlab technology into NAVIO◊ 7.0, the next version of its surgical robotics system. The companies are further collaborating on developing additional applications to enhance the FTSE 100 group’s digital surgery ecosystem.
The commercial terms of the acquisition have not been disclosed.
Analysts on FTSE 100 group
JPMorgan Chase & Co, which rates the FTSE 100 group as a ‘neutral,’ boosted its target on the Smith & Nephew share price from 1,689p to 1,758p. According to MarketBeat, the artificial hips and knees maker currently has a consensus ‘hold’ rating and an average price target of 1,506.50p.
Smith & Nephew updated investors on its first-quarter performance last month, posting a 4.4-percent rise in organic revenue on an underlying basis and flagged revenue growth in the upper half of the guidance range.