Medical technology company Medtronic Inc. (NYSE:MDT) swung into the green Tuesday after announcing its proposed purchase of Osteotech (NASDAQ:OSTE), a leader in the field of biologic products for regenerative healing, for $123 million.

Shares of Osteotech were trading up nearly 64% upon the announcement.

The deal, which works out to $6.50 for each Osteotech share, will improve Medtronic's biologics business’ bone healing portfolio and expand its current presence in spine, orthopedic trauma, and dental into additional new treatment areas, including joint reconstruction, foot and ankle, and sports medicine.

Their combined technical and product capabilities will foster opportunities to develop breakthrough next-generation products, the companies said.

General manager of Medtronic’s biologics business. Tom McGuinness. said the company expects "substantial opportunities" within the next decade that will help more patients achieve biologics and regenerative therapies.

"The combination of our two organizations will only accelerate our innovation and progress against our goals in helping to alleviate pain, restore health, and extend life for our patients," he said.

Osteotech has pioneered several innovative technology platforms including Grafton demineralized bone matrix, a family of products that supports bone generating capabilities, and it also developed MagniFuse Bone Grafts and Plexur Biocomposites, which are used in musculoskeletal surgeries.

"Our mission is to develop leading-edge regenerative biologics that will positively impact the lives of patients, enhance physicians' capabilities to deliver superior surgical outcomes and enhance the gift of life to promote healing," Osteotech CEO Sam Owusu-Akyaw said.

Osteotech’s board of directors unanimously approved the transaction, though the deal remains subject to shareholder approval.

"We believe Medtronic's global scale and scope across geographies and functions and its commitment to innovation make them an ideal partner to carry forward our mission," Akyaw said.