NuVasive to Acquire Mega Surgical, Brazilian Distributor

By Julie A. Vetalice

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.

Tags: M&A