SeaSpine announced today that it has entered into an agreement to acquire all issued and outstanding shares of 7D Surgical. The transaction, valued at $110 million, is expected to close in 2Q21.
The companies partnered in a strategic alliance in February 2020 to distribute 7D Surgical's flagship navigation system founded upon its machine-vision, image-guided platform. The system reduces radiation by eliminating intra-operative CT and fluoroscopy, with the patient registration process taking 30 seconds compared to 30 minutes with traditional systems.
According to analysts, 7D Surgical has 54 systems placed to date (24 U.S./30 ex-U.S.) and contractual sales of over $19 million.
SeaSpine finished 2020 with revenue of $153.3 million, -3% compared to the prior year. The company closed its COVID-related revenue gap with a strong performance in the second half of the year (+7.2%). However, many of its competitors across the revenue spectrum in the spine market have initiated strategic transformations to focus on enabling technology.
Terry Rich, CEO of Surgalign, a comparably-sized SeaSpine competitor, recently said, "Many industry thought leaders believe that medical device companies will see significant change in the near future, as the currency of the industry moves from implant to digital services."
SeaSpine could potentially close a portfolio gap and better prepare for the near future of orthopedics with the acquisition of 7D Surgical.