SeaSpine stock soars after Orthofix merger deal at a near 38% premium

Shares of SeaSpine Holdings Corp. SPNE, +1.09% soared 21.1% in premarket trading Tuesday, after the medical technology company focused on spinal disorder treatments announced a merger agreement with Orthofix Medical Inc. OFIX, +0.33% that values SeaSpine at about $284.9 million. Under terms of the deal, SeaSpine shareholders will receive 0.4163 Orthofix shares for each SeaSpine share they own. Based on Monday’s closing prices, that values SeaSpine shares at $7.66, a 37.5% premium. After the deal closes, which is expected to occur in the first quarter of 2023, Orthofix, a medical device company with a spine and orthopedics focus, will own 56.5% of the combined company and SeaSpine will own 43.5%. “The combined company’s broad portfolio of technology, expanded commercial capabilities and ability to make greater investments in innovative solutions provide a clear roadmap for sustainable, top-tier growth and increased competitiveness across a broad spectrum of products and services,” said Orthofix Chief Executive Jon Serbousek. SeaSpine’s stock has tumbled 59.,1% year to date through Monday and Orthofix shares have shed 40.8%, while the S&P 500 SPX, -0.75% has lost 24.2%.