Medical components maker Greatbatch is buying Lake Region Medical in a cash-and-stock deal valued at about $1.73 billion.
The companies say the transaction will create one of the biggest medical device component suppliers in the world. It will serve the cardiac, neuromodulation, vascular, orthopaedics and advanced surgical markets. The business will have operations in the U.S., Latin America, Europe and the Asia-Pacific region.
Greatbatch Inc. will pay about $478 million in cash, assume approximately $1 billion of Lake Region Medical Inc.'s debt and issue 5.1 million shares of common stock and options to Lake Region Medical's shareholders.
Greatbatch stockholders are expected to own about 83.4 percent of the combined company, with Lake Region Medical stockholders owning about 16.6 percent.
The combined company will have approximately $1.5 billion in revenue and more than 9,000 employees worldwide.
Both companies' boards unanimously approved the transaction, which is targeted to close in the fourth quarter.
Privately held Lake Region Medical is based in Chaska, Minnesota. Greatbatch is based in Frisco, Texas.