Italy-US medical merger to create €2.4bn firm

The Italian manufacturer of pacemakers Sorin on Thursday announced it plans to merge with US medical device firm Cyberonics, creating a new company valued at around €2.4 billion.

Italy-US medical merger to create €2.4bn firm
The new entity will employ around 4,500 people in more than 100 countries. Photo: Sorin Group

The all-stock transaction would lead to the new firm being 46 percent held by Sorin shareholders and 54 percent by those of Cyberonics. The combined turnover would be around €1.3 billion, Sorin said in a statement.

The proposed merger has been unanimously approved by the board of directors of the two companies. The new entity – to be named prior to closing of the transaction – will employ around 4,500 people in more than 100 countries.

It will focus on three areas: cardiac surgery, cardiac rhythm management (pacemakers, defibrillators, etc.), especially in Europe and Japan, and neuromodulation, a speciality of Cyberonics which develops technologies for the electrical stimulation of nerves used in treating epilepsy and some forms of depression.

"As one company we will be able to leverage our combined strengths, capture new opportunities and create new solutions to benefit patients and healthcare professionals alike," said Sorin chief executive Andre-Michel Ballester, who will serve as chief executive of the merged company with Cyberonics chief Dan Moore as non-executive chairman.

Based in Britain, the new company will be listed in London and on the Nasdaq. The transaction, pending approvals by the shareholders of both companies and regulators, is expected to be completed in the third quarter of this year.

After the announcement of the merger, shares of Sorin soared 19.49 percent to €2.62 in early trading on the Milan stock market.

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New Tesla factory to be built near Berlin

A new Tesla auto factory for the European market will be based in Germany, chief executive Elon Musk said Tuesday.

New Tesla factory to be built near Berlin
Photo: picture alliance/dpa

Musk said during a ceremony at Germany's Golden Steering Wheel awards that the new “Gigafactory” would be “in the Berlin area.”

He said the company planned the facility “near the new airport” in Berlin and that Tesla would also set up a design center in the area.

“Everyone knows that German engineering is outstanding and that's part of the reason we are locating our Gigafactory Europe in Germany,” he said on-stage.



“We are also going to create an engineering and design center in Berlin because I think Berlin has some of the best art in the world.”

The news highlights a further global expansion for the electric automaker, which last month said its factory in China had started production.

Musk offered few details, but reports have said the company hopes to begin European production by 2021.

Tesla is estimated to have some 30 percent of the European market for battery-powered cars.