The big consolidation???

It’s been almost 1 week since the announcement of Globus Medical buying Nuvasive in a $3.1bn stock deal and following my conversations with industry professionals, I have a few questions.

Will the deal go through?

• In the days following the announcement, Globus’ share price dropped almost 22% Is this just an immediate reaction? Or cause for concern?
• Is this deal a masterstroke by David Paul and the GMED Executive Team? I understand the value is only ~20% over market cap and only a couple of times the NUVA revenue.

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The start of the “big consolidation”?

• Following on from Seaspine and Orthofix, will we start seeing more large scale M&As in spine? Will smaller Companies continue to thrive or will they be acquired or disappear?
• Who will be the next Spine business to be acquired or merge?

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I look forward to learning your thoughts!

As always, if anyone wants to discuss the market, don’t hesitate to reach out.