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Medtronic Buys Sofamor Danek

Executive Summary

Although the acquisition of Sofamor Danek by Medtronic came as a surprise to some, both Medtronic and Sofamor Danek had in recent years begun to move toward a common ground around neurosurgery. Sofamor Danek should benefit from Medtronic's growing presence in neurological medicine, especially surrounding minimally invasive and image-guided neurosurgery. In announcing the deal. Medtronic noted that its neurological business will, with Sofamor's revenues included, account for 28% of the company's overall sales this year, a figure Medtronic expects to grow to 40% in the next ten years.
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