Shares of NuVasive Inc. (NUVA) surged 13.3% on Monday after reports said the surgical equipment maker was in discussions to be bought by U.K.-based Smith & Nephew PLC (SNNUF) for approximately $3 billion.
First reported by the Financial Times late Friday, NuVasive shares jumped as much as 18% on the Nasdaq Stock Exchange in after-hours trading. The stock closed Monday's U.S. trading day up $6.57 to $56.12.
Citing "people with direct knowledge of the talks," the Financial Times noted that discussions between the companies were ongoing and that no definitive deal had been reached. Neither company provided additional comments or updates.
San Diego-based NuVasive makes equipment for spinal surgery as well as bone implants; London-based Smith & Nephew produces a wide range of medical equipment and products, including "advanced wound management products" and orthopedic reconstruction devices.
On Thursday, Smith & Nephew announced its quarterly and full-year results, with all three of its business areas showing increased revenue.
The company said it earned $4.9 billion in 2018, up from $4.77 billion in the prior year. It also said it expected revenue to increase 2.5% to 3.5% through 2019, with trading profit margins expected in the 22.8% to 23.2% range.
Separately, Smith & Nephew said it does not believe the U.K.'s decision to leave the European Union "will have a significant impact on our long-term ability to conduct business into and out of the EU or U.K.," noting the U.K. accounts for approximately 5% of global revenue, and the majority of its manufacturing takes place outside the U.K. and EU.