Stryker Corporation has announced an agreement to acquire NOVADAQ Technologies, a firm specializing in fluorescence imaging technology used in surgery. The $701 million definitive agreement between Stryker and the Greater Toronto-based Novadaq is expected to close at the end of the third quarter.

NOVADAQ’s flagship SPY fluorescence imaging allows physicians to precisely visualize blood flow in vessels and tissue perfusion during treatment, reducing post-procedure complication rates and the cost of care. A minimally invasive companion product called PINPOINT offers similar features in an endoscopic package.

"I am proud of the impact our SPY and PINPOINT technology has made throughout the world in breast reconstruction and colorectal surgery, as well as other minimally invasive applications, and look forward to the additional progress we can make as part of Stryker's organization,” said Rick Mangat, President and CEO of NOVADAQ

Stryker is pouncing on NOVADAQ’s low share price of $6.50, down 36% compared to last year. However, the deal prices all shares at $11.75, almost double the closing price on June 16.

The cross-border transaction is subject to approval by NOVADAQ shareholders and Canadian regulatory bodies including the Ontario Superior Court of Justice.

"This acquisition aligns with Stryker's focus on enabling our customers to see and do more by enhancing cross-specialty surgical visualization," stated Timothy J. Scannell, Group President, MedSurg and NeuroTechnology. "NOVADAQ'S unique innovative technology complements Stryker's advanced imaging portfolio and expands our product offerings into open and plastic reconstructive surgery. NOVADAQ'S innovative technology can reduce post-procedure complication rates and the cost of care for a broad variety of surgical treatments."