MINNEAPOLIS — Medtronic Inc. said Monday that it has agreed to buy Sofamor Danek Group Inc., the biggest maker of spinal implants, for $3.6 billion in stock to double its sales of devices to treat nervous-system disorders and injuries.
Medtronic will issue $115 in stock for each Sofamor share, or 13% more than Sofamor's closing price Friday of $101.63. Sofamor jumped $8.50 on Monday to $110.13, and shares of Medtronic, the biggest pacemaker company, gained $1.56 to $66.56, both on the New York Stock Exchange.
Memphis-based Sofamor makes rods, screws and plates implanted to stabilize the spine, supplying a market that's expanding by 25% a year and could reach $1.2 billion in sales by 2001, analysts estimate.
News of the deal comes as Medtronic rival Johnson & Johnson nears completion of its purchase of Sofamor's chief rival, DePuy Inc. Medtronic is expanding as sales growth slows in its pacemaker and defibrillator implant lines.