Bacterin International has purchased the outstanding shares of X-spine Systems in exchange for approximately 4.24 million shares of Bacterin common stock and approximately US$60m in cash, subject to customary working capital adjustments, and including the extinguishment of approximately US$13m of X-spine debt. A press release states that the transaction will position the combined company as a comprehensive supplier for spine surgery procedures that offers both hardware and biologics through a more substantial national distribution footprint.
“This transaction joins two strong and growing organisations and reinforces the strategic initiatives outlined earlier this year to expand our product offerings, strengthen customer relationships and expand our distribution capabilities. We are excited to leverage further our combined operating platform and exceptional talent to drive, significant and ongoing value for our stockholders. With the addition of X-spine, we will have a stronger financial profile with over US$80m in revenue and positive earnings before interest, taxes, depreciation, and amortisation,” said Dan Goldberger, Bacterin’s chief executive officer.
With an emphasis on less-invasive treatments for the degenerative spine, X-spine’s spinal implants and instrumentation are “highly complementary to Bacterin’s leading orthobiologics portfolio,” the company says—the majority of spinal procedures using X-spine’s product portfolio could use an orthobiologic that Bacterin currently offers.
“This transaction will increase the scope of our organisation with a new, diversified portfolio of products focused on the orthopaedic and spine markets,” said David Kirschman, X-spine Systems’ president and chief executive officer. “Furthermore, we will be able to offer those diversified products to our established customer base, representing an accessible revenue growth opportunity for the combined business.”