Globus Medical Expands Portfolio with $250M Acquisition of Nevro

Globus Medical, a leading musculoskeletal technology company, has announced plans to acquire spinal cord stimulation specialist Nevro for approximately $250 million. The all-cash deal, expected to close in the second quarter of 2025, marks Globus' entry into the neuromodulation market and further solidifies its position in the orthopedic space.

Acquisition Details and Strategic Rationale

Globus will pay $5.85 per share for Nevro, representing a 27% premium to the company's 90-day volume-weighted average price. This move comes on the heels of Globus' recent $3.1 billion acquisition of NuVasive in 2023, signaling an aggressive growth strategy for the Pennsylvania-based medical device manufacturer.

Dan Scavilla, CEO of Globus Medical, emphasized the strategic importance of the acquisition, stating that it "furthers our mission to become the preeminent musculoskeletal technology company in the world." The deal will provide Globus access to Nevro's neuromodulation technologies, future implant solutions, and an expanded product portfolio.

Nevro's Product Portfolio and Market Position

Nevro, headquartered in Redwood City, California, specializes in spinal cord stimulation devices for chronic pain management, including treatments for back pain and painful diabetic neuropathy. The company's product line also includes sacroiliac joint fusion devices for lower back pain, following its acquisition of Vyrsa Technologies in 2023.

Industry analysts view the acquisition favorably, noting the potential synergies between Nevro's technologies and Globus' existing orthopedic business. William Blair analyst Brandon Vazquez highlighted that while the valuation is "relatively inexpensive," the deal could provide Nevro with opportunities to leverage Globus' global scale and orthopedic relationships to boost sales and profitability.

Financial Outlook and Market Impact

Globus expects the acquisition to be accretive to earnings in the second year after closing. The company has projected 2025 net sales of $2.8 billion to $2.9 billion, assuming the deal closes as scheduled. This forecast builds upon Globus' preliminary 2024 revenue of $2.52 billion and Nevro's preliminary 2024 revenue of up to $409 million.

While some investors may be surprised by Globus' quick move into neuromodulation following the NuVasive acquisition, BTIG analyst Ryan Zimmerman characterized the deal as a "fairly low-risk bet" given the relatively small cash outlay. The acquisition is expected to complement Globus' existing portfolio, particularly in the area of sacroiliac joint treatments.