Hoping to strengthen its robotic offerings, Stryker (SYK) inked a $1.65 billion pact on Wednesday to acquire smaller medical-device maker Mako Surgical (MAKO) in a deal that carries a hefty 85.5% premium.

The acquisition would allow Stryker to control Mako’s advanced robotic arm technology, which is highlighted by a system that assists orthopedic surgeons in knee and hip joint replacement.

Based in Ft. Lauderdale, Mako was founded in November 2004, went public in February 2008 and generated $102.72 million in sales in 2012.

"MAKO has established a compelling technology platform in robotic assisted surgery which we believe has considerable long-term potential in joint reconstruction," Stryker CEO Kevin Lobo said in a statement. “Our combined expertise offers the potential to simplify joint reconstruction procedures, reduce variability and enhance the surgeon and patient experience.”

Stryker agreed to pay $30 a share for Mako, representing an 85.5% premium on the company’s Tuesday closing price of $16.17. The $30 price matches a level Mako last traded at during May 2012. The company’s all-time high of $45.15 was set in March 2012.

"The combination of Stryker's established industry leadership with Mako's innovative products and people contains the power to positively transform orthopedics," said Mako CEO Maurice Ferre.

Shares of Mako surged 82.58% to $29.53 Wednesday morning, though they stopped short of the $30 buyout level. The rally leaves Mako up almost 130% year-to-date.

Stryker said it expects the acquisition to hurt the company’s adjusted earnings per share, excluding acquisition and integration costs, by about 10 cents to 12 cents in the first full year, be neutral in year two and add to the bottom line after that.

Kalamazoo, Mich.-based Stryker slid 2.32% to $69.19 on Wednesday, trimming its 2013 gain to 26.2%.

Earlier this year, Stryker agreed to acquire Hong Kong’s Trauson Holdings for $764 million.

Citigroup (C) served as Stryker’s financial advisor on the deal, while JPMorgan Chase (JPM) advised Mako.

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