Shares of NuVasive (NASDAQ:NUVA), a medical device company focused on equipment used during spinal surgery, had risen 13% as of 10:30 a.m. EST on Monday. The double-digit move is attributable to rumors that the company might be an acquisition target.
The Financial Times reported on Friday afternoon that Smith & Nephew (NYSE:SNN) has opened up acquisitions discussions with NuVasive.The report claims that "people familiar with the matter" said the deal would be worth about 2.3 billion pounds, which translates into roughly $3 billion.
For context, NuVasive's market cap was about $2.5 billion as of Friday.
As of the time of this writing, neither company has offered any commentary as to the validity of this report. However, that isn't stopping traders from bidding up the share price today in the hopes that this rumor turns out to be true.
It is unclear at this time whether an official bid will emerge. However, it is worth noting that on its recent conference call with Wall Street, Smith & Nephew's CEO Namal Nawana stated during his prepared remarks that his team is currently looking at potential acquisitions in markets where there is "a good strategic fit."
While it wouldn't surprise me to find out that these discussions were actually happening, there's no way to know for sure whether an actual deal will materialize. Investors who are interested in buying NuVasive's stock today should do so only if they believe in the long-term potential of the business.