NEW YORK (The Deal) -- The U.K.'s Smith & Nephew hopes to get a leg up in the fast-growing sports medicine sector through the $1.5 billion acquisition of Nasdaq-listed ArthroCare (ARTC) which counts One Equity Partners LLC as its largest shareholder.

The London-based buyer said Monday it agreed to offer $48.25 a share in cash for Austin, Texas-based ArthroCare. The offer price is price is 6.3% above the target's closing share price Friday on Nasdaq, and the $1.5 billion enterprise value, which is net of roughly $200 million of cash, represents a multiple of 15.7 times adjusted 2012 Ebitda, according to Smith & Nephew.

Smith & Nephew shares added 1.4% in London Monday morning to trade at 888 pence, for a total market value of about 2.92 billion ($4.77 billion). Smith and Nephew is looking to the acquisition to bolster its offerings in noninvasive sports medicine.

"This is a great deal that rebalances Smith & Nephew in areas of higher growth," said Smith & Nephew CEO Olivier Bohuon on a conference call.

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S&N Pays $1.5B For Sports Medicine Specialist ArthroCare