Globus Medical to Acquire Nevro for $250M, Expanding into Neuromodulation

Globus Medical, a prominent orthopedic devicemaker, has announced plans to acquire Nevro, a developer of neuromodulation platforms for chronic pain treatment, in an all-cash deal valued at approximately $250 million. This strategic move marks Globus Medical's expansion into the pain management space and further solidifies its position in the musculoskeletal technology market.

Acquisition Details and Financial Implications

The acquisition, expected to close in the second quarter of 2025, will see Globus Medical paying $5.85 for each of Nevro's outstanding shares. This represents a 27% premium over Nevro's 90-day volume-weighted average price and a 38% premium over the past 30 days.

Globus Medical anticipates 2025 net sales of $2.8 billion to $2.9 billion, assuming the deal closes as planned. The company expects the acquisition to be accretive to earnings in the second year after closing. For context, Globus Medical reported preliminary 2024 revenue of $2.52 billion, while Nevro announced preliminary 2024 revenue of up to $409 million.

Strategic Rationale and Market Impact

Dan Scavilla, President and CEO of Globus Medical, emphasized the strategic importance of the acquisition, stating, "We believe our size and operational capabilities will accelerate market penetration of Nevro's technology and bring much-needed and clinically superior relief to patients suffering from chronic pain."

The addition of Nevro's portfolio, which includes spinal cord stimulator implants for chronic pain and diabetic neuropathy, complements Globus Medical's existing offerings in 3D-printed and expandable spine implants, robotic surgical systems, and orthopedic trauma and joint reconstruction products.

This acquisition follows Globus Medical's $3.1 billion merger with spine specialist NuVasive in 2023, further expanding the company's reach in the $50 billion musculoskeletal market. The move into neuromodulation represents a new direction for Globus Medical, potentially surprising some investors, according to BTIG analyst Ryan Zimmerman.

Industry Analyst Perspectives

While the acquisition may be unexpected, analysts view it as a strategic opportunity for both companies. William Blair analyst Brandon Vazquez noted that the "relatively inexpensive valuation" could provide Nevro with access to Globus Medical's global scale and orthopedic relationships, potentially boosting sales and profitability.

Analysts also highlight the potential synergies between Nevro's sacroiliac joint portfolio and Globus Medical's existing business. The combination of Globus Medical's resources and Nevro's technologies is expected to create a more diversified leader in the pain management sector.

Kevin Thornal, President and CEO of Nevro, expressed optimism about the merger, stating, "Through Globus Medical's capabilities, global infrastructure and other resources, we will be better positioned to achieve our full potential to become a broader and more diversified leader in the pain management space."