Musculoskeletal solutions company Globus Medical and US-based NuVasive have signed an agreement to merge in an all-stock deal valued at $3.1bn to form a patient care-centric global musculoskeletal company.

The deal combines two technology firms in the musculoskeletal sector with a common vision of innovation for unmet clinical requirements to enhance patient care.

Based in Pennsylvania, Globus Medical produces surgery products for spinal surgery, joint reconstruction, imaging, and trauma whereas NuVasive is known for products used in spine surgery.

According to the terms of the agreement, NuVasive shareholders will be issued 0.75 shares of Globus Medical for each share of NuVasive held. The deal has been unanimously approved by the boards of directors of the two publicly-listed firms.

Based on the closing share price of Globus Medical on 8 February and the assumed exchange ratio, NuVasive’s implied share price would be $57.72.

Upon completion of the deal, NuVasive shareholders will hold about 28% and Globus Medical shareholders will own hold about 72% of the combined entity.

Globus Medical CEO and president Dan Scavilla said: “This transaction reflects our mission to become the leading musculoskeletal technology company in the world by developing products that promote healing in patients with musculoskeletal disorders.

“With NuVasive, we can help support more patients through leading innovation and expanding our commercial reach to provide superior service to our surgeon and hospital partners.

“We look forward to combining the NuVasive and Globus Medical teams to capitalise on the many opportunities to improve patient care and create sustainable shareholder value.”

NuVasive said that the transaction will support the globalisation strategy of both firms by further penetrating existing and future markets. It will also combine the spine and orthopaedic solutions portfolio of both companies.

Additionally, both companies will use each other’s operational advantages like Globus Medical’s in-house manufacturing capacity and the global distribution networks of NuVasive to expand operational capabilities.

The transaction is anticipated to close in the middle of 2023, pending regulatory and shareholder approval as well as other closing requirements.