Surgical implant firm RTI Surgical has signed a definitive agreement to buy 100% outstanding shares of spinal implant technology company Paradigm Spine in a cash and stock deal worth up to $300m.
The move is part of RTI’s strategy to minimise complexity while improving operational excellence and growth.
Paradigm Spine develops spinal stenosis disease management solutions. Its Coflex® Interlaminar Stabilization device is available for use in more than 40 countries.
The device is a minimally invasive stabilisation implant, which treats moderate to severe lumbar spinal stenosis (LSS) and decompression.
RTI expects the Coflex® device to boost its overall spinal offering, as well as strengthen customer retention and portfolio pull-through.
RTI Surgical president and CEO Camille Farhat said: “Coflex® is FDA PMA-approved and an established treatment that we believe is poised for accelerated and sustainable long-term growth given its clinical efficacy and ongoing progress toward insurance coverage.
“We look forward to working with the Paradigm Spine team to complete this compelling addition to the RTI Surgical family.”
As per the terms of the agreement, RTI Surgical will pay $100m in cash and 10,729,614 shares of its common stock worth about $50m when the transaction closes.
Future milestone payments will be given in cash and RTI common stock.
The acquisition, which has been approved by the boards of directors of the companies, is subject to customary closing conditions and regulatory approvals. It is set to close in the first quarter of next year.
RTI Surgical implants are designed for spinal, sports medicine, general surgery, orthopaedic, and trauma procedures. Its portfolio also includes a 3D-printed polymer implant material for spinal interbody fusion.