Smith & Nephew acquires Engage Surgical

Medical technology business Smith & Nephew has acquired cementless unicompartmental knee system developer Engage Surgical in a deal worth up to $135.0m, contingent on sales performance.

Smiths & Nephew stated the acquisition of the Florida-based business, funded from existing cash and debt facilities, "strongly supports" its strategy for growth by transforming its business through innovation and acquisition, while also providing differentiation for its customers.

The FTSE 100-listed firm said on Wednesday that the Engage surgical partial knee system was a novel, modern cementless knee implant to serve a resurgent segment driven by the potential for better long-term fixation through biologic integration, shorter operating times, and the shift to ambulatory surgery centres.

With Engage Surgical's partial knee system, Smith & Nephew expects to be able to drive market expansion in the US, and in time in other markets as regulatory approvals can be secured.

The partial knee market was said to currently be worth approximately $300.0m in the US alone and was expected to grow faster than the total knee market.

As of 0830 GMT, S&N shares were up 0.76% at 1,251.46p.