Conmed has signed a definitive agreement for the acquisition of US-based medical device start-up Biorez for $85m in cash consideration at closing.
To be made on a cash-free, debt-free basis, the deal also includes up to $165m additional growth-based earnout payments for four years.
Biorez is focused on advancing soft tissue healing using its BioBrace Implant technology, an innovative bioinductive scaffold.
BioBrace has been developed to promote healing by strengthening soft tissues where weaknesses exist. It is easy to use with a broad range of arthroscopic techniques.
The US Food and Drug Administration (FDA) has approved BioBrace for use in multiple product sizes.
Following completion of the transaction, ConMed will gain access to this technology for use in sports medicine soft tissue healing.
Conmed board chair, president and CEO Curt Hartman said: “The addition of Biorez and its BioBrace platform represents an important step forward for our sports medicine portfolio.
“BioBrace fits seamlessly into our existing suite of products, and we are excited to advance the next generation of healing in sports medicine.
“BioBrace represents the type of high-growth, high-margin platform that drives our long-term vision for Conmed.”
The company provides surgical devices as well as equipment for minimally invasive procedures.
Its products are used by surgeons and physicians in various specialities, including gynaecology, gastroenterology, general surgery, orthopaedics and thoracic surgery.
Conmed International and Global Orthopedics president Pat Beyer said: “I look forward to working closely with the Biorez team and leveraging their technical experience as we work to generate clinical data and bring this product to a broader group of customers and patients.”
The company expects to fund the transaction through its existing credit facility and complete the acquisition early this month.
In May, Conmed agreed to acquire medical device manufacturer In2Bones Global for $145m in cash.
