Merit Medical has announced the acquisition of Dfine, in a merger transaction through which Dfine has become a wholly-owned subsidiary of Merit. The purchase consideration was approximately US$97.5 million in cash and was financed by a group of banks led by Wells Fargo and included Bank of America, HSBC and US Bank, a press release from the company says. Dfine produced revenues of US$33.4 million in 2015, with approximately 75% of revenues generated in the USA and 25% outside the United States.
Dfine’s products are directed to vertebral augmentation (kyphoplasty and vertebroplasty), as well as targeted radiofrequency ablation of metastatic spinal tumours and these product lines have 510(k) clearance and CE marking.
“We are delighted to have Dfine join Merit,” says Fred P Lampropoulos, Merit’s chairman and CEO. “Our relationship began a few years ago when Merit was asked to provide key device components for Dfine’s Stabilit and Stabilit Mx products. In addition to the spinal compression fracture segment, we believe Dfine’s Star tumour ablation kit complements and enhances Merit’s oncology business.”
“We plan to combine Merit’s oncology segments, including embolics, microcatheters and biopsy products into a newly created interventional oncology and spine division (IOS),” Lampropoulos says.
“We believe the restructuring of the sales divisions – cardiovascular, peripheral and IOS – will enable us to devote greater focus on Merit’s broad portfolio of products, align our sales and marketing efforts with Merit’s goal of achieving a more therapeutic and disease state centred product offering, and enhance opportunities for future growth,” he adds.
“Although Dfine has a presence in Germany and Austria, as well as limited distribution partners, we believe there are many opportunities in Australia, Canada, Japan, China, the Nordic countries and other regions. We anticipate that Dfine’s intellectual property portfolio of approximately 110 US and international patents will provide substantial coverage for many years ahead,” Lampropoulos explains.