Recently, we published an article where we predicted that Globus could make an acquisition shortly. However, we could not imagine that it would be so fast and even less than the acquired company could be Nuvasive after the failed negotiations a year ago.
First thoughts on this acquisition
- Leadership: Globus Medical is firmly advancing toward the leadership of the spine market. This acquisition places it in second position with a 22% share. Probably soon, it will surpass Medtronic and become the leader.
- Cultural Misalignment: Nuvasive and Globus are culturally very different. Integration could be a complex and painful process.
- Best portfolio on the market: The range of products resulting from this acquisition is incredible in size and quality.
- Globus becomes a big company. It has operated until now very controlled. The executive team has always been very close to the market. With this step, the company culture will change, they will have to develop new structures and they will probably lose control.
- Big Investment: This is a $3 bln deal. It will put Globus under pressure to make the investment profitable.
However, we congratulate Globus on that move. If you want to lead, you have to take risks and play hard. Its founder and chairman, David Paul, has always been committed to thinking big. He did it when he left Synthes and founded Globus and he is doing it now!
As the Roman poet Virgil said several centuries ago “Fortune favors the brave”. In this case, we are sure that it will be so!
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[…] As we said a few days ago, it is a brave move by Globus but necessary. As a spine-focused company with an ambition to lead the market, they had no choice but to acquire a company. We believe they have done the right thing. Globus could have bought a smaller one like Zimvie, Seaspine, or ATEC. However, they chose to go big. If you want to lead, take risks and make a strong and definitive movement. In the past, other companies have tried to be among the leaders in the spine by buying smaller ones and have failed (Zimmer). […]