Wright Medical Group has acquired Solana Surgical (Solana) and entered into a definitive agreement to acquire OrthoPro, provider of foot and ankle products.
Under the terms of Solana agreement, Wright has acquired all Solana’s outstanding equity for around $90m, consisting of $47.6m in cash and $42.4m in Wright common stock.
Solana CEO Alan Taylor said: "We believe that Wright Medical, with its global leadership position in the foot and ankle market and expertise in medical education and product development, is the ideal partner to accelerate our growth and realize the full potential of Solana’s products around the world."
Under the terms of the agreement with OrthoPro, Wright will acquire OrthoPro for $36m in cash, with $32.5m paid at closing and up to $3.5m more in cash contingent on revenue milestones included in the agreement.
The transaction with OrthoPro is expected to close in February and Wright anticipates that both transactions will be accretive to adjusted EBITDA in 2014.
OrthoPro CEO Dustin Leavitt said this combination will provide the opportunity for further expansion of OrthoPro’s innovative products to support market growth and procedure penetration worldwide.
"We look forward to advancing our foot and ankle business with the recognised leader in the foot and ankle market," Leavitt added.
Products from both companies will complement Wright’s existing foot and ankle portfolio and include several specialised products that expand its extremities product offering.
Wright president and CEO Robert Palmisano said: "The acquisitions of Solana and OrthoPro are excellent fits for our Extremities business, enabling us to add a base of fast-growing extremity revenue that we can effectively grow on a go-forward basis.
Wright will provide additional information on the financial impact of this transaction on its fourth quarter 2013 earnings call, scheduled for 24 February.
