K2M closes $1.4B sale to Stryker

It’s official: K2M Group Holdings Inc.’s $1.4 billion sale to Kalamazoo, Michigan-based Stryker Corp. has closed.

Under the deal, Leesburg-based K2M, a 300-person spinal surgery device maker, becomes a wholly owned subsidiary of Stryker (NYSE: SYK), a 33,000-employee Fortune 500 med-tech firm.

The transaction was completed Nov. 9, according to Securities and Exchange Commission filings.

The deal faced some hurdles during the process, when two lawsuits filed Oct. 11 sought to block it, alleging that K2M failed to disclose certain financial projections in a prior proxy filing. But the company settled both suits by reporting additional financial information, though it said the allegations were “without merit and that no further disclosure is required.”

After that, shareholders approved the merger agreement. Now Stryker acquires all of K2M’s stock for $27.50 per share, a 26 percent premium over its $21.82 closing price on Aug. 29, when the agreement was reached. K2M ceased to…

Read the full story from the Washington Business Journal.