Globus Medical (GMED) entered into an agreement to acquire the ex-U.S. operations and distribution channels of Alphatec (ATEC) for US $80.0MM in cash. The transaction is expected to close by 4Q16.
For 2015, ATEC posted ex-U.S. revenue of $70.7MM, and for 1Q16, $15.6MM.
GMED will extend a 5-year senior secured credit facility of up to $30.0MM to ATEC to support working capital. Further, the transaction includes a supply agreement through which ATEC will supply its products to GMED for up to 5 years.
The transaction approximately doubles GMED’s international sales, and grants the company immediate access to Brazil and Japan (known as the largest medical device market outside of the U.S.), as well as sales operations in Italy and the U.K., and enables ATEC to focus on U.S. expansion of the Arsenal™ Degenerative and Deformity systems, Battalion™ Universal Interbody System and the planned 2016 launches of Battalion Lateral and XYcor® Expandable Spinal Spacer systems.
GMED intends to offer its own products through its acquired sales channels, but during the transition, it will continue to sell ATEC products. The timing of the transition in each country will depend upon regulatory requirements and contractual or tender commitments.
For 4Q16, GMED expects that the acquisition will add ~$10MM of additional sales and be earnings-neutral; adjusted 2016 guidance is now ~$575MM. For 2017, GMED expects additional revenue of ~$40MM.
Globus Medical (GMED) entered into an agreement to acquire the ex-U.S. operations and distribution channels of Alphatec (ATEC) for US $80.0MM in cash. The transaction is expected to close by 4Q16.
For 2015, ATEC posted ex-U.S. revenue of $70.7MM, and for 1Q16, $15.6MM.
GMED will extend a 5-year senior secured credit facility of up to $30.0MM to...
Globus Medical (GMED) entered into an agreement to acquire the ex-U.S. operations and distribution channels of Alphatec (ATEC) for US $80.0MM in cash. The transaction is expected to close by 4Q16.
For 2015, ATEC posted ex-U.S. revenue of $70.7MM, and for 1Q16, $15.6MM.
GMED will extend a 5-year senior secured credit facility of up to $30.0MM to ATEC to support working capital. Further, the transaction includes a supply agreement through which ATEC will supply its products to GMED for up to 5 years.
The transaction approximately doubles GMED’s international sales, and grants the company immediate access to Brazil and Japan (known as the largest medical device market outside of the U.S.), as well as sales operations in Italy and the U.K., and enables ATEC to focus on U.S. expansion of the Arsenal™ Degenerative and Deformity systems, Battalion™ Universal Interbody System and the planned 2016 launches of Battalion Lateral and XYcor® Expandable Spinal Spacer systems.
GMED intends to offer its own products through its acquired sales channels, but during the transition, it will continue to sell ATEC products. The timing of the transition in each country will depend upon regulatory requirements and contractual or tender commitments.
For 4Q16, GMED expects that the acquisition will add ~$10MM of additional sales and be earnings-neutral; adjusted 2016 guidance is now ~$575MM. For 2017, GMED expects additional revenue of ~$40MM.
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