World's largest medical device maker, Medtronic has agreed to buy out Osteotech Inc for $123 million. This company is into the business of bone grafting.

If the deal goes through then the addition of Osteotech will be done to the biologics business.

As per the news reports, Medtronic has offered to pay $6.50 per share for the company. This is 65 per cent premium on the closing share price of Osteotech of $3.94.

For the year 2009, Osteotech had a revenue of $96.7 million and is expecting to make it $97 million by 2010. The Eatontown-based company is into the business of making fusion products which are used in bone grafting. One of the main brands of Osteotech is MagniFuse.

The products are used in the bone grafting of issues related with spine, orthopedic trauma, and dental devices, and allow it to start selling joint reconstruction, foot and ankle. The importance of these areas is more in the field of sports.

While the deal reports are in the news, it has still not got the approval of shareholders of Osteotech.