“In Ascent, we see a key player in a high-growth market riding two major trends: cost containment and environmental responsibility.”
Investing in growth
Our remarkably strong cash position enabled us to pursue strategic acquisitions in 2009 that complement our existing franchises, while also adding a new growth platform to our portfolio. Our most prominent acquisition was Ascent Healthcare Solutions, the market leader in the reprocessing and remanufacturing of medical devices in the United States. This was a $525 million all-cash transaction that allows our company to extend our value proposition to hospitals and healthcare providers. In Ascent, we see a key player in a high-growth market riding two major trends: cost containment and environmental responsibility. With Ascent as part of Stryker, we will help divert millions of pounds of medical waste from landfills, while simultaneously helping our hospital customers redirect substantial financial resources to patient care quality initiatives.
We also acquired OtisMed Corporation, a privately held software technology firm. OtisMed will focus on customizable instrumentation that has the potential to complement the many benefits that surgeons and patients realize from our Triathlon Knee System, as well as our other implants. Additionally, we entered into agreements to acquire the assets used to manufacture, market and sell the Sonopet Ultrasonic Aspirator technology, which includes precision microsurgical instruments used in neurological and spine procedures. We are excited about the possibilities that these innovative products hold for our future growth.
We were pleased to welcome two new members to our Board of Directors during the year: Howard Lance and Srikant Datar. Howard is the chairman, president and CEO of Harris Corporation, a Fortune 500 leader in telecommunications, and he also spent time living in Hong Kong earlier in his career. As a seasoned CEO, Howard’s advice and perspective are invaluable. Last summer, we were also fortunate to have Dr. Srikant Datar, a professor at the Harvard Business School, join the Board. Srikant is already bringing exceptionally valuable perspectives to our team, especially related to our approach in emerging markets and to our Biotech business. Both Howard and Srikant have had an immediate impact on our Board discussions, asking penetrating questions that will no doubt make us an even stronger team and company in the years ahead.