Lately, there is a rumor that Globus Medical would have thought to acquire Nuvasive. Could it be true? The companies could have had some early discussions on a possible deal, according to traders, who cited a Bloomberg report.
According to SeekingAlpha.com Globus would already have at its disposal the approval of the antitrust authorities as well as the necessary financing to carry out the operation. Additionally, Nuvasive is undervalued and its acquisition would make Globus gain market share. This operation would place it second in the market with a 20.3% market share and very close to the leader, Medtronic.
However, Globus doesn’t usually pay too much for assets, and acquisitions in the spine market tend to be complicated because there is often “significant” turnover in the salesforce of the target company. Today NuVasive rose 5.9%, while Globus Medical fell 5.4%.
We will have to pay attention and see what happens …