Orthopaedic company Wright Medical Group and medical device firm Tornier have agreed to merge in an all-stock transaction worth about $3.3bn.

The merger will create a mid-sized growth company focusing on three orthopaedics areas that include upper extremities, lower extremities and biologics.

After completion of the transaction, the businesses of Wright and Tornier will be combined and incorporated in the Netherlands.

Wright Medical shareholders will own about 52% of the combined company, while Tornier investors will have 48%.

The combined company will operate as Wright Medical Group N.V. and be led by Robert Palmisano, Wright’s president and CEO.

Tornier CEO David Mowry will serve as executive vice president and chief operating officer of the combined company, which will have its US headquarters in Memphis, Tennessee, where Wright’s current headquarters is situated.

The transaction is expected to be completed in the first half of 2015.

Palmisano said: "This combination will create the premier Extremities-Biologics company with a broad global reach.

"Together, we will have one of the most comprehensive upper and lower extremity product portfolios in the market, extending our leadership position and further accelerating our growth opportunities and path to profitability, all of which we believe will generate long-term value for our shareholders."