Alphatec Holdings Inc.’s board has approved plans to buy certain assets of Phygen LLC, a spinal implant manufacturer based in Irvine, for $15.2 million in stock and cash.
Carlsbad-based Alphatec Holdings (Nasdaq: ATEC), which owns Alphatec Spine Inc., on Aug. 7 signed a letter of intent to buy the Phygen assets.
“Since becoming CEO of Alphatec Spine earlier this year, our growth strategy for 2012 and beyond includes a focus on new product launches and acquisitions,” Alphatec Chief Executive Les Cross said in a statement. “We have since launched new products such as our BridgePoint Spinous Process Fixation System, acquired exclusive U.S. distribution rights to market a synthetic bone growth biologic under our own brand name of Alphatec NEXoss and we have plans to acquire certain assets of Phygen LLC, which we hope to close shortly. It is clear we are executing our new business strategy.”
“Phygen is delighted by this transaction with Alphatec,” said Mark Renfro, a member of Phygen’s board of governors. “Upon closing, Phygen will look to bring its innovative product development process, which has a foundation in design input from active spine surgeons and strategic direction from Phygen’s Scientific Advisory Board, into the Alphatec family. All in all, I believe that this proposed transaction is a real win-win for Phygen and Alphatec.”
Alphatec Spine said that it expects the transaction to contribute $15 million in revenue in 2013 and add to fully diluted GAAP earnings per share in 2013.The closing of the transaction is subject to the approval of a majority of the members of Phygen, the execution of the definitive documents and customary closing conditions set forth in the definitive documents.