ReAble to buy DJO for $1.18 billion

Medical device maker ReAble Therapeutics Inc. announced plans Monday to acquire orthopedic sports medicine company DJO Inc. for $1.18 billion in cash.

Austin, Texas-based ReAble offered to pay $50.25 a share for DJO, 19.4% higher than the stock’s closing price Friday.

Shares of Vista, Calif.-based DJO surged $8, or 19%, to $50.10.

The deal has been unanimously approved by DJO’s board of directors and committee of independent directors.

The deal is a strategic fit that will improve value to customers by taking advantage of both company’s products in orthopedic rehabilitation and pain management, said Ken Davidson, ReAble’s chief executive.

“The resources of the combined company will allow us to develop even better and more innovative products and to take care of more of the needs of more patients and caregivers than ever before,” he said.

An affiliate of private equity firm Blackstone Group is the controlling shareholder of ReAble and is helping pay for the transaction.