Mazor Robotics

2018: Medtronic purchased Mazor Robotics for $1.64 billion

On September 20, 2018 Medtronic announced purchase of Mazor Robotics for $1.64 billion to strengthen the positions and technologies in the market of robots surgeons for backbone operations.

According to the The Wall Street Journal newspaper, referring to the statement of Medtronic, the company will redeem all shares Mazor Robotics which are in circulation at the price of $29.25 apiece, using only own means. It is going to close the transaction in the third financial quarter which will come to the end at Medtronic on January 25, 2019.

In day when it was announced sale of Mazor Robotics, stocks of the company grew in price for 7.5%, and a quotation rate of Medtronic practically did not change. For the 12-month period by September 20, 2018 securities of Medtronic rose in price for 23% whereas the quotations of Mazor Robotics increased by 6.1%.

Medtronic purchased the developer of robots for transactions on a backbone for $1.6 billion

Before announcing merger of Mazor Robotics, the Medtronic company owned a 11 percent share in the Israeli producer of the medical equipment. Medtronic considers that the redemption of the rest "will slightly water" adjusted earnings counting on an action according to the results of 2019 financial year. At the same time the transaction will provide "two-digit profit on the invested capital by to fourth year with a possibility of further increase in a deposit".

Medtronic and Mazor Robotics are going to show results of integration of the products within the annual North American Spine Society 2018 conference which will take place from September 24 to September 29 in Los Angeles.

Accession of a command and product portfolio of Mazor to Medtronic will increase our global influence through Medtronic channels, will strengthen the leading positions of our systems in the market and will stimulate implementations of our strategy for delivery of health care by means of innovations — the head of Mazor Ori Hadomi said.[1]

2017: Investments of Medtronic into $40 million, increase in a share up to 10%

At the end of August, 2017 the American producer of the medical equipment Medtronic announced the next investment into Mazor Robotics. The volume of a new round of financing is about $40 million.

These investments of Medtronic into Mazor Robotics became the third. The general size of investments taking into account the transaction announced at the end of August reached $72 million that allowed Medtronic to increase a share in Mazor Robotics to 10.6%.

A robotic system for Mazor X backbone operations

Conditions of the new agreement also provide that Medtronic will take 1.21 million shares of the Israeli company at the price of $44.23 apiece, in result of what the share will grow to 14.2%, and the total amount of investments — to $125 million.

Within the first transaction Medtronic had to purchase 15 robotic Mazor X systems used by surgeons for backbone and spinal cord operations in 2016. The new agreement sets the minimum annual purchasing amount of this equipment. In four and a half years of Medtronic undertook to purchase several hundred Mazor X systems.

Besides, according to conditions of the new agreement, Medtronic undertakes to create a team of 30 sales representatives of Mazor Robotics "for preserving of the current dynamics of sales".

Due to such close cooperation with Medtronic in Mazor Robotics expect to cut down operating expenses on 25% or approximately for $13 million.

Medtronic — our valuable strategic partner, and together we achieved desirable result at the first stage, having much more outstripped our initial plan — the CEO of Mazor Robotics Ori Hadomi says. — I consider that transition to the next stage will strengthen ours without that the strong leading position in the growing market of the systems of the surgical systems for backbone operations. Our strategic partnership will allow hospitals in the new markets worldwide to get access to Mazor X and clinical advantages which are offered by this technology.

2016

Investments of Medtronic into $20 million

In July, 2016 the producer of the medical equipment Medtronic announced the next investment into Mazor Robotics company. This statement was made practically along with the announcement of the Mazor X platform intended for carrying out highly automated backbone operations.

According to the StarTribune edition, Medtronic company invests about $20 million in Mazor Robotics. Taking into account this total amounts an investment of the American company in the Israeli developer will be $51.9 million Besides, Medtronic is going to start the third stage of the financial transaction after the conclusion of the global distribution agreement with Mazor Robotics.

The Mazor X system is intended for carrying out highly automated backbone operations

Before Medtronic and Mazor X signed the contract on joint development and promotion of the robotic systems used by surgeons for backbone and spinal cord operations.

Medtronic planned commercial start of the new Mazor X platform approved by the Food and Drug Administration (FDA) for October, 2016. By July 12 of Medtronic made the purchase order of 15 such systems.

Despite entry of Medtronic into capital stock of Mazor Robotics, the last intends to remain the independent company, the CEO Ori Hadomi said it. He also noted that Mazor Robotics will save the surgical systems open for other producers of implants.

Mazor Robotics — the market leader of surgical management systems, and her product portfolio is natural addition of our technology offers. Making use of experience of two companies, we aim to increase the accuracy and efficiency of surgery of a backbone to bring benefit to patients and their attending physicians — reported in Medtronic in response to a request of StarTribune to comment on investments into Mazor Robotics.[2]

Contract with Medtronic

In May, 2016 Medtronic announced signing of the contract with Mazor which assumes acquisition of robots and investment. This statement provoked rapid growth of quotations of the Israeli company.

Under the terms of the agreement, Medtronic will purchase from Mazor of 15 automated systems Renaissance helping surgeons to do backbone operations for the American medical institutions. Besides, Medtronic will acquire 4% of shares of the partner for $11.9 million.

Medtronic invests in the developer of robots for transactions on Mazor backbone

The signed agreement assumes three stages. On the first them them Medtronic can purchase another 6% of securities of Mazor. Further the American medical conglomerate can take additional 5% of shares of Mazor and receive exclusive sale rights and distribution of future products of the Israeli developer.

Partnership with Medtronic is very important for Mazor, considering that in the first quarter 2016 the company sold only five Renaissance robots. Medtronic controls a third of the American market of solutions for spinal surgery which annual volume is estimated at $7 billion, reported the Techtime News edition on May 24, 2016.

In case of successful development of the relations between Medtronic and Mazor the last can produce for the partner hundreds of robots for backbone and spinal cord operations.

This agreement has very important aspects for our clients and shareholders — the CEO of Mazor Ori Hadomi says. — New developments, such as synergy implants, are capable to provide Mazor with new sources of revenue outside the growing income from the equipment, service agreements and supplies.

In day when the statement for cooperation with Medtronic was made, the stocks Mazor rose in price for 50%.^[3]

Robotics