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ATEC announced its intention to acquire EOS imaging for nearly USD $122 million in cash and equity. The transaction is slated to close in 3Q20. For 2019, EOS posted revenue of €21.4 million (~$23.6 million), leading to a sales multiple of 5.18.
What Does EOS Offer?
EOS imaging provides orthopedic medical imaging and software solutions, such as rapid, low dose, biplanar full-body imaging and 3D modeling capabilities. The technology captures a full-body image in a weight-bearing position, allowing for precise measurement of anatomical angles and dimensions.
The completed transaction is expected to immediately expand ATEC’s revenue base through the addition of EOS’s revenue run rate, and create pull-through and cross-selling opportunities through an expanded sales network and combined customer base. EOS imaging will advance ATEC’s AlphaInformatiX platform providing capabilities in surgical planning, patient-specific implants, intraoperative alignment reconciliation and other intraoperative functionalities.
EOS’ installed base of 350+ imaging systems includes numerous academic centers and nine of the top 10 U.S. hospitals as ranked by U.S. News and World Report. EOS’ international footprint will bolster ATEC’s future ability to re-enter markets in more than 30 countries. (The company sold its ex-U.S. assets to Globus Medical in 2016.)
Aside from features such as standing full-body assessment, reduced radiation exposure and precise 3D measurements, EOS’ portfolio also includes EOSapps and EOSlink for surgical planning and OR integration. The pre-operative planning software is used to anticipate surgical results and choose components for the procedure, and pairs with surgical technologies for precise execution with EOSlink.
Smaller Companies Throw Hats into the O.R. Ring
“While other large spine players have invested in enabling technologies,” said Pat Miles, Chairman and CEO, “We are thinking differently. We created a conduit to deliver information into the operating room with AlphaInformatiX. This transaction will integrate spine imaging and anatomical modeling onto the platform to actually inform the operative experience.”
This deal and SeaSpine’s partnership with 7D Surgical are examples of smaller companies expanding their presence in the operating room. Imaging and navigation provide an attractive approach for smaller spine players that lack the resources of Medtronic, DePuy Synthes, NuVasive, Stryker and Globus Medical. Mid-tier spine companies are increasingly turning to enabling technologies to not only drive market share increases (occasionally through capital equipment for implant share agreements), but also to take a greater portion of a case’s overall revenue.
ATEC announced its intention to acquire EOS imaging for nearly USD $122 million in cash and equity. The transaction is slated to close in 3Q20. For 2019, EOS posted revenue of €21.4 million (~$23.6 million), leading to a sales multiple of 5.18.
What Does EOS Offer?
EOS imaging provides orthopedic medical imaging and software solutions,...
ATEC announced its intention to acquire EOS imaging for nearly USD $122 million in cash and equity. The transaction is slated to close in 3Q20. For 2019, EOS posted revenue of €21.4 million (~$23.6 million), leading to a sales multiple of 5.18.
What Does EOS Offer?
EOS imaging provides orthopedic medical imaging and software solutions, such as rapid, low dose, biplanar full-body imaging and 3D modeling capabilities. The technology captures a full-body image in a weight-bearing position, allowing for precise measurement of anatomical angles and dimensions.
The completed transaction is expected to immediately expand ATEC’s revenue base through the addition of EOS’s revenue run rate, and create pull-through and cross-selling opportunities through an expanded sales network and combined customer base. EOS imaging will advance ATEC’s AlphaInformatiX platform providing capabilities in surgical planning, patient-specific implants, intraoperative alignment reconciliation and other intraoperative functionalities.
EOS’ installed base of 350+ imaging systems includes numerous academic centers and nine of the top 10 U.S. hospitals as ranked by U.S. News and World Report. EOS’ international footprint will bolster ATEC’s future ability to re-enter markets in more than 30 countries. (The company sold its ex-U.S. assets to Globus Medical in 2016.)
Aside from features such as standing full-body assessment, reduced radiation exposure and precise 3D measurements, EOS’ portfolio also includes EOSapps and EOSlink for surgical planning and OR integration. The pre-operative planning software is used to anticipate surgical results and choose components for the procedure, and pairs with surgical technologies for precise execution with EOSlink.
Smaller Companies Throw Hats into the O.R. Ring
“While other large spine players have invested in enabling technologies,” said Pat Miles, Chairman and CEO, “We are thinking differently. We created a conduit to deliver information into the operating room with AlphaInformatiX. This transaction will integrate spine imaging and anatomical modeling onto the platform to actually inform the operative experience.”
This deal and SeaSpine’s partnership with 7D Surgical are examples of smaller companies expanding their presence in the operating room. Imaging and navigation provide an attractive approach for smaller spine players that lack the resources of Medtronic, DePuy Synthes, NuVasive, Stryker and Globus Medical. Mid-tier spine companies are increasingly turning to enabling technologies to not only drive market share increases (occasionally through capital equipment for implant share agreements), but also to take a greater portion of a case’s overall revenue.
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JV
Julie Vetalice is ORTHOWORLD's Editorial Assistant. She has covered the orthopedic industry for over 20 years, having joined the company in 1999.
