Stryker has signed a definitive agreement to acquire surgical safety system maker Patient Safety Technologies for a total of $120m or $2.22 per common share in an all cash transaction.

The acquisition is expected to be completed during the first quarter of 2014, subject to approval by shareholders of Patient Safety Technologies and other customary closing conditions.

Patient Safety Technologies operates its business through its wholly owned subsidiary, SurgiCount Medical. Its Safety-Sponge System includes bar-coded surgical sponges and towels, an integrated bar-code scanner and compliance tracking software.

The system helps prevent foreign objects from being retained in the body while in the operating room, thereby improving patient safety and reducing health-care costs.

SurgiCount, launched in 2006, has established a strong customer base of more than 300 hospitals including several of the leading medical institutions in the US.

According to the company, the Safety-Sponge System will augment Stryker Instruments’ broad portfolio of products that are designed to optimize the perioperative experience by reducing hazards, streamlining operations and improving outcomes for patients and caregivers.

Stryker group president MedSurg and Neurotechnology Timothy J. Scannell said the company is committed to providing solutions that result in a higher quality of care and level of safety for both patients and healthcare professionals.

"This acquisition aligns with Stryker’s focus on offering products and services that have demonstrated cost effectiveness and clinical outcomes," Scannell added.