We are investigating whether the directors of NuVasive, Inc. (Nasdaq: NUVA) (“NuVasive”) acted in the best interests of NuVasive shareholders in approving the merger of NuVasive with Globus Medical, Inc. (“Globus”) in an all-stock transaction pursuant to which 0.75 shares of Globus will be exchanged for each share of NuVasive.
The share exchange values NuVasive at $57.72 per share based on Globus’ last close. However, Globus’s stock price is down sharply today on the news, which has substantially reduced the value of the deal to NuVasive shareholders.
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Why is there an investigation?
On February 9, 2023, NuVasive announced that it had agreed to merge with Globus in an all-stock transaction pursuant to which 0.75 shares of Globus will be exchanged for each share of NuVasive.
The share exchange values NuVasive at $57.72 per share based on Globus’ last close. However, Globus’s stock price is down sharply today on the news, which has substantially reduced the value of the deal to NuVasive shareholders.
The agreement has been approved by the NuVasive board of directors (“Board”).
“We are investigating whether NuVasive’s Board acted in the best interests of NuVasive shareholders in approving the sale,” explained Joshua Fruchter, a partner in the firm. “This includes whether the acquisition price adequately compensates NuVasive shareholders, and whether all material information regarding the transaction has been fully disclosed.”
Notably, according to an analysis of Wall Street price targets for NuVasive in the last 90 days published on Seeking Alpha, there is a high price target for NuVasive of $63.00 per share, which is well above the implied deal price, especially given the substantial drop today so far in the price of Globus.
Additionally, the deal price is below the 52-week high of $59.75 per share at which NuVasive closed on April 14, 2022, which suggests that Globus may be taking advantage of the temporary market downturn to acquire NuVasive at an unfair price.