Smith & Nephew to acquire ORATEC

UK medical devices group Smith & Nephew has reached agreement to acquireORATEC Interventions, a USA-based medical device innovator in the use of thermal energy to treat joint and spine disorders.

Under the terms of the deal, the ORATEC board has agreed to a cash offer of $12.50 per share of all its outstanding shares,which makes the cost of the acquisition to S&N $310 million. The net cost after deducting the US firm's cash and short-term investments, which were $52 million as of December 31, 2001, is expected to be $258 million. S&N intends to fund the purchase from available bank facilities.