Smith & Nephew plc SNN closed its acquisition of Switzerland-based Atracsys Sàrl, the provider of optical tracking technology used in computer-assisted surgery. The deal, initiated in June 2019, is in line with the company’s strategy to invest in cutting-edge technologies, which will help accelerate its presence in the multi-asset digital surgery and robotic ecosystem space.
However, the financial terms of the deal were kept under wraps.
Atracsys Business at a Glance
Atracsys’ portfolio includes open platform optical navigation and robotic tracking components with applications in orthopaedics, neurosurgery, spine and dental.
With this purchase, Atracsys’ fusionTrack 500 optical tracking camera will be a core enabling technology for Smith & Nephew’s next-generation robotics platform that will be commercially released in 2020.
As compared to the existing tracking technology, the fusionTrack 500 system offers better measurement of speed and latency performance that supports reduced procedure time as well as increases accuracy resulting in finer precision surgical tasks like the bone cuts.
Smith & Nephew's M&As Continue
Smith & Nephew is fortifying its footprint through its inorganic growth path. Last month, the company completed its buyout of Brainlab orthopaedic joint reconstruction business. This business provides digital workflow tools starting from pre-operative planning to intraoperative navigation to post-operative evaluation and sharing.
In April, it concluded the acquisitions of regenerative medicine products maker Osiris Therapeutics and Leaf Healthcare, the developer of the unique Leaf Patient Monitoring System.
Earlier, in January, the company culminated the consolidation of CeterixOrthopadics, the developer of NovoStitch Pro, a device for meniscal repair.
In the past three months, shares of the company have outperformed its industry. The stock has rallied 11.7% compared with the industry’s 4.7% rise.
Zacks Rank & Other Key Picks
Smith & Nephew currently carries a Zacks Rank #2 (Buy). A few other top-ranked stocks in the broader medical space are Haemonetics Corporation HAE, DENTSPLY SIRONA XRAY and Penumbra PEN. While Haemonetics sports a Zacks Rank #1 (Strong Buy), the other two hold a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Haemonetics has a long-term earnings growth rate of 13.5%.
DENTSPLY’s long-term earnings growth rate is expected to be 11.5%.
Penumbra’s long-term earnings growth rate is projected at 21.5%.
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