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Medtronic To Buy Mazor Robotics In $1.64 Bln Deal

Medtronic plc (MDT) agreed to acquire all outstanding ordinary shares of Mazor Robotics (MZOR), a pioneer in the field of robotic guidance systems, for $58.50 per American Depository Share, or $29.25 per ordinary share, in cash, for a total of about $1.64 billion, or $1.34 billion net of Medtronic's existing stake in Mazor and cash acquired. The boards of directors of both companies have unanimously approved the transaction.

The acquisition is expected to close during Medtronic's third fiscal quarter ending Jan. 25, 2019, subject to the satisfaction of customary closing conditions including receipt of regulatory clearances and approval by Mazor's shareholders.

The transaction is expected to be modestly dilutive to Medtronic's fiscal 2019 adjusted earnings per share, but given the current strength of Medtronic's business, the company expects to absorb the dilution.

Consistent with its long-term financial objectives, Medtronic projects the acquisition to generate a double-digit return on invested capital by year four, with an increasing contribution thereafter.

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