Surgalign Holdings, formerly RTI Surgical Holdings, announced the closing of the sale of its OEM business to Montagu Private Equity for a total cash consideration of $440 million. Proceeds from the sale will be used to pay down all outstanding indebtedness.
Effective immediately, the company changed its name to Surgalign Holdings and will use ticker symbol SRGA on the NASDAQ. Trading under the new symbol will begin on July 23, 2020. Additionally, the company's Board of Directors appointed Terry M. Rich to the role of President and CEO effective immediately. Mr. Rich, formerly RTI's President of Global Spine, steps into the role after the retirement of Camille Farhat.
As a pure-play spine company, Surgalign has positive momentum on the strength of its spinal hardware sales and novel therapies like the coflex Interlaminar Stabilization device. The company's spine sales grew +20.6% to $119 million in 2019 and continued its positive trajectory into 1Q20 with +11.2% growth.
The OEM business will retain the name RTI Surgical, and continue its focus on tissue, biologics and collaboration with other medical technology companies.