Stryker (NYSE:SYK) said today it inked a definitive agreement to acquire K2M (NSDQ:KTWO) for approximately $1.4 billion. In the deal, Kalamazoo, Mich.-based Stryker said it will pay $27.50 per share for each outstanding share of K2M, for a total of approximately $1.4 billion. The purchase price represents a 27% premium over K2M’s average closing price during the 90 days of trading ended August 29, and will position K2M as a wholly owned subsidiary of Stryker after closing. Stryker said that the acquisition will strengthen its spinal division’s offerings in the core spinal segment and complex spine market, as well as adding “an attractive minimally invasive spine portfolio.” The addition will also improve Stryker’s additive manufacturing capabilities and global footprint, the company said. K2M chair & CEO Eric Major is slated to serve as Stryker’s spine division president to lead the combined business, with current Stryker spine prez Bradley Paddock assisting in the transition and integration efforts. “Joining Stryker will be a very exciting next chapter for our global team and surgeon customers around the world. Stryker’s established leadership in the orthopaedic and neurosurgical market, combined with K2M’s culture of innovation and leadership in complex spine and minimally invasive solutions, represent a powerful opportunity for Stryker to strengthen its leadership in the $10 billion global spine market,” K2M CEO Major said in a press release. The deal, which has already won approval from both the company’s board of directors, is slated to close in the fourth quarter. The acquisition is expected to have an immaterial dilutive impact on Stryker’s earnings per share this year. Stryker said it is not changing its adjusted net earnings per diluted share guidance for the year, expected to be between $7.22 and $7.27, and that it is reaffirming its previous guidance. “This acquisition underscores our commitment to the spinal market, which is the largest segment of Orthopaedics with significant unmet needs. We believe K2M will significantly enhance our presence with surgeons, patients and employees in both the spine and related neurotechnology markets,” Stryker chair & CEO Kevin Lobo said in a press release. Shares in K2M have risen 25.4% so far today, at $27.38 as of 10:19 a.m. EDT. Shares in Stryker have fallen slightly, down 0.8% at $169.95. In late July, Stryker posted second-quarter earnings that topped expectations on Wall Street and lifted its guidance for the remainder of the year.