Stryker confirms deal to acquire Orthovita

Stryker has signed an agreement by which it will take control of fellow medical device manufacturer Orthovita.

The transaction has been valued at $316 million (195.7 million pounds) and will be closed during the second quarter of 2011, allowing Stryker to expand its presence in the $5 billion orthobiologics market.

Orthovita is a major player in this sector thanks to product offerings such as its Vitoss synthetic bone grafts and Cortoss vertebral augmentation systems, while its biosurgery division offers haemostasis products such as Vitagel.

The newly acquired firm's product portfolio achieved combined sales of $95 million in the last fiscal year.

Orthovita president and chief executive officer (CEO) Antony Koblish expressed confidence that the deal will deliver maximum shareholder value and allow it to benefit from Stryker's sales and marketing expertise.

Stephen MacMillan, chairman, president and CEO of Stryker, added: "We believe the collective talent of our sizable sales forces across multiple franchises positions us to build on Orthovita's success and accelerate sales growth."