ArthroCare to be bought by British company

Feb 3, 2014
Austin Business Journal

ArthroCare Corp., the Austin area's largest medical device business, has reached an agreement to be acquired by a British company for $1.37 billion


ArthroCare is to be bought by medical technology developer Smith & Nephew PLC, with an offer of $48.25 for each ArthroCare share. That price was about six percent above ArthroCare’s Friday closing price of $45.38, according to a Monday filing with the U.S. Securities and Exchange Commission


ArthroCare’s stock price surged more than 6 percent, or $2.87, to the deal price of $48.25 in early trading Monday


ArthroCare (Nasdaq: ARTC), founded in 1993, develops surgical products designed to enable minimally invasive procedures. It employs about 1,800 workers, including 450 in North America and 270 in the Austin area, making it the largest medical device maker in the Central Texas region and the 11th-largest public company ranked by fiscal 2012 revenue, according to Austin Business Journal data


As part of the deal, ArthroCare agrees to maintain a compliance program meeting certain criteria


In August, the company posted a second-quarter loss of $6.7 million on $92 million in revenue, versus a $12.2 million profit on $91.7 million in revenue during the same time in 2012


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