NuVasive (NUVA) entered into a definitive agreement to acquire Mega Surgical, exclusive distributor of NUVA products in Brazil. The transaction is expected to close within 1Q16.
Mega Surgical is headquartered in Rio de Janeiro with a satellite office in São Paulo. Founded in 1996, it has partnered with NUVA since 2008.
Source: NuVasive, Inc.
In the company's 4Q15 earnings call, Quentin Blackford, CFO, offered the following observation on international business:
"Our Latin American performance continues to experience weakness primarily due to monetary policy factors unrelated to the procedural volumes [that] we see in countries like Brazil. We also experience softer than expected results in the Middle East, as well as Puerto Rico, where we saw lighter surgeries [return to normal in] Q4."
Mr. Blackford later clarified that underlying procedures were not an issue, but rather that NUVA was not able get paid and recognize revenue in the region.