Smith & Nephew buys ArthroCare for $1.7bn
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Artificial hip and knee maker Smith & Nephew has paid $1.7 billion for medical device maker ArthroCare, just weeks after the US firm settled a long-running Department of Justice investigation into securities fraud at the company.
British firm Smith & Nephew said the purchase of the Austin, Texas-based company would strengthen its fast-growing sports medicine division.
Smith & Nephew’s chief executive Oliver Bohuon called the deal "compelling" and said : "Together, we will be able to generate significant additional revenue from the more comprehensive portfolio, combined sales force and Smith & Nephew’s global footprint."
ArthroCare develops and manufactures surgical devices, instruments, and implants, focusing on sports medicine and ear, nose, and throat.
Chief executive David Fitzgerald called the takeover a "natural transaction for both companies".
Last month ArthroCare agreed to pay the US Department of Justice $30 million to settle an investigation into an alleged $400 million securities fraud scheme under the previous management team.
Last year two executive’s pleaded guilty to conspiracy to commit securities and wire fraud, and ArthroCare’s former chief executive and chief financial officer are due to stand trial later this year as part of the probe, first announced in 2008.
Smith & Nephew’s shares rose 1.2 per cent on news of today’s deal.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments