Smith & Nephew Buys Blue Belt Technologies

Smith & Nephew plc CEO Olivier Bohoun is a man of his word.

Last year, Bohoun told The Telegraph (United Kingdom) that he was not interested in merging with a medtech giant, calling such moves a “defensive” strategy to reduce costs. “These are exactly the deals we don’t want to do,” he asserted.

And he’s managed to avoid them, focusing instead on strategic investments that allow the company to enter previously untapped markets. The company recently deployed this strategy with the $275 million purchase of Blue Belt Holdings Inc. (Blue Belt Technologies), a developer and provider of robotics-assisted orthopedic surgery.

“Our experience working with Blue Belt Technologies and our customer insight has convinced us that robotics will become increasingly mainstream across orthopedic reconstruction in the foreseeable future,” Bohuon said in a new release announcing the deal. “This acquisition is a compelling strategic move, with the combination of complementary products and R&D programs creating a platform from which we can shape this new area of surgery. It reinforces our orthopedic reconstruction strategy, which combines innovation, disruptive business models and a strong emerging markets platform to drive performance.”

Blue Belt Technologies’ Navio surgical system provides robotics-assistance in unicondylar or partial knee replacement surgery through computed tomography-free navigation software and a hand-held, robotic bone-shaping device. It is a highly portable system that can be moved freely within hospitals or ambulatory surgical centers, according to Smith & Nephew. Navio also helps improve implant placement accuracy, bigwigs said.

By combining Blue Belt Technologies with Smith & Nephew products, Smith & Nephew bigwigs intend to expand the company’s product portfolio beyond partial knees, launching the Total Knee System in 2017 and developing a bi-cruciate retaining knee system and a revision knee system — both currently in Blue Belt’s development pipeline. Moving forward, Smith & Nephew hopes to expand the offerings of the Navio system to assist surgeons in bi-cruciate retaining knee arthroplasty and, in the long-term, total hip arthroplasty and sports medicine applications.

“Blue Belt Technologies has redefined robotics in orthopedic surgery, establishing strong traction with customers who are attracted by the high degrees of implant placement accuracy made possible by Navio, as well as its ease of use, portability and attractive economics,” Blue Belt Technologies President/CEO Eric Timko said. “We are delighted to be joining with Smith & Nephew, with whom we share a passion for innovation and a mission to support healthcare professionals. Together, we will realize the many opportunities to bring the benefits of robotics-assisted surgery to more patients and new indications.”

The deal is expected to close by year’s end. Approximately 120 employees based in Pittsburgh, Pa., and Minneapolis, Minn., and Manchester, United Kingdom, will join Smith & Nephew.