Late last month, CEO Kevin Lobo said Stryker had plans to pursue multiple M&A deals over the latter half of this year. It hasn’t taken long for the company to start making good on that promise.
Stryker announced that it signed a new agreement to pick up care.ai, a developer of smart hospital systems and room management solutions. That includes ambient cameras and sensors that can monitor patients autonomously—capable of alerting providers to potential falls and bed sores, as well as detecting situations where staff may be in danger.
The company described its buy as a step further into a segment of patient care that’s growing in importance, as health systems continue to face staffing shortages and workplace safety concerns. Stryker said the acquisition would integrate seamlessly with its previous $3 billion purchase of Vocera Communications and its catalog of digital devices for nurses and clinicians.
“care.ai will help Stryker significantly accelerate our healthcare IT and digital vision to provide customers with real-time, smart and connected decision-making tools that enhance the lives of caregivers and their patients,” Andy Pierce, president of Stryker’s medical surgical and neurotechnology group, said in a statement.
The financial terms of the deal, as well as its expected closing date, were not disclosed.
In July, Stryker closed two separate tuck-in acquisitions: it picked up Artelon, a specialist in soft-tissue fixation for foot, ankle and sports medicine procedures, and it tapped Molli Surgical for its miniature breast cancer marker to guide tumor removal surgeries.
The company also finalized deals in March and April, respectively, with the French orthopedic implant developer Serf and the Texas-based mfPHD, a manufacturer of modular, stainless steel walls for operating rooms.
On a July 30 earnings call, Lobo said Stryker remains “bullish” about its upcoming deal pipeline through the end of 2024. “Most of them are the tuck-in variety, and most of them are not very large, but you will see us continue to be active,” he said.
Lobo added that Stryker expects to fund its shopping spree on the strength of a large backlog, with particularly strong demand in its endoscopy and medical product portfolios.