ITGR Integer Holdings Corporation

Medical-device company Greatbatch Inc. has agreed to buy privately held Lake Region Medical for about $730 million in cash and stock, in a bid to expand its offerings to markets including advanced-surgical and interventional cardiology.

Greatbatch, which makes devices for cardiac, neuromodulation, and orthopaedic markets, will pay $478 million in cash and issue 5.1 million in shares. Including the assumption of debt, the deal is valued at $1.73 billion.

Both companies' boards have approved the deal.

The combined company will have about $1.5 billion in revenues and will serve multiple medical-device segments and energy and portable medical markets.

Frisco, Texas-based Greatbatch expects the deal to add to its per-share earnings in the double-digits next year and more so after.

Synergies from the deal are expected to be about $25 million next year, increasing to $60 million in 2018. The deal is expected to close in the fourth quarter of the year.

The deal is the latest tie-up in the medical-devices industry. Companies have been looking to cut costs and become more efficient in the face of pricing pressure from hospitals, combined with lower surgical-procedure volumes because of consumer uncertainty about the economy, analysts say.

Earlier this year, Zimmer Holdings Inc. completed its deal for Biomet Inc., creating a giant in the global market for artificial knees, hips and other orthopedic and bone-mending implants.

In July, St. Jude Medical Inc. agreed to pay $3.4 billion in cash to acquire Thoratec Corp., the leading maker of a promising type of heart pump, as the company grapples with stagnant revenue growth.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com

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(END) Dow Jones Newswires

August 27, 2015 07:55 ET (11:55 GMT)

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