ReAble Therapeutics, an Austin, Texas-based orthopedic device company, is set to acquire the nonoperative-orthopedic products company DJO, Vista, Calif., through a cash and debt assumption transaction valued at $1.6 billion, according to a news release issued today by both companies.
The proposed merger would combine complementary orthopedic rehabilitation and pain-management products, according to the news release, allowing for broad market coverage and an expanded sales force.
The deal calls for the Blackstone Groupan assets-management company heavily invested in the healthcare sector that is ReAbles controlling shareholderto finance the acquisition, paying DJO shareholders $50.25 for each outstanding share of DJO common stock. The purchase price represents a 25% premium over the stocks current value.
Company officials expect to complete the acquisition during the fourth quarter of this year following DJO stockholder and regulatory approval. -- by Shawn Rhea