ATEC announced today that it has terminated the Tender Offer Agreement to acquire EOS imaging. The deal was originally announced on February 28 and slated to be worth up to $88 million, plus debt retirement of $33.9 million, in a combination of cash and equity.
The negative market impacts of COVID-19 led ATEC to determine a "Material Adverse Effect", as defined in the agreement, had occurred and circumstances were no longer conducive to completing the transaction. Following the termination of the agreement, ATEC and Perceptive Credit Holdings agreed to terminate the commitment letter for $160 million in secured debt financing.
ATEC Chairman and CEO Pat Miles said, "This has been a difficult, disappointing decision. Both companies have worked so hard and so cooperatively, over many months, to bring this transaction together. On behalf of the entire ATEC Family, I want to personally thank EOS for its commitment and hospitality throughout this process. It has been a thrill for me and other members of ATEC leadership to engage directly with so many of the talented EOS team members, and to see firsthand their prowess and passion for their work – attributes both our companies share. While the acquisition is no longer feasible as contemplated, I continue to believe that ATEC’s and EOS’s interests are best served through a strategic collaboration."