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(Alliance News) - Smith & Nephew PLC on Wednesday said it acquired Engage Surgical for up to USD135 million to enter the fast-growing partial knee market in the US and drive its robotics strategy.
The Watford, England-based medical equipment maker said the price of the acquisition was contingent on sales performance and will be financed from existing cash and debt facilities.
Orlando, Florida-based medical equipment manufacturer Engage Surgical is the owner of the Engage Surgical Partial Knee System, it said.
The medical product is a cementless knee implant that is currently the only cementless unicompartmental knee system commercially available in the US, Smith & Nephew said.
The partial knee market is worth around USD300 million in the US and is expected to grow faster than the total knee market by around 4% per year through 2029. S&N also anticipates that cementless partial knees will grow ahead of overall partial knees, in line with recent patterns seen in the cementless segment.
The Engage Surgical acquisition also is expected to drive Smith & Nephew's robotics and real intelligence strategy because partial knee procedures are well-matched for robotics due to the need for precise alignment.
Its CORI Surgical System is well-suited for this, Smith & Nephew added.
"Smith & Nephew is now the only medical device company offering both cemented and cementless partial knee implants in the US, as well as robotics assistance through the CORI Surgical System that is well-suited for the precise alignment needed," said Randy Kilburn, general manager for Reconstruction, Robotics & Digital at S&N.
Engage Surgical Chief Executive Dan Justin added: "The Engage Surgical team is excited about joining Smith & Nephew to help expand the impact of the Engage Surgical Partial Knee System and integrating it with the CORI surgical system."
Shares in Smith & Nephew were up 0.7% at 1,250.50 pence each on Wednesday morning in London.
By Abby Amoakuh; abbyamoakuh@alliancenews.com
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