US-based healthcare organisation Biotronics has entered into a definitive agreement to transfer its ownership to medical device company, NuVasive for $98m in an all-cash transaction.
Approved by the board of directors of both the companies, the transaction is expected to be completed next month.
Founded in 1982, Biotronic is a privately-held organisation that offers intraoperative neurophysiological monitoring services to surgeons enabling them to offer a consistent surgical outcome resulting to better clinical care for the patients.
Annually, the healthcare organisation supports over 45,000 surgeries in more than 650 hospitals, offering real-time remote monitoring through patented software and a secure, virtual private network.
NuVasive chairman and CEO Gregory Lucier said: "We are extremely excited about this combination, as it more than doubles NuVasive’s neurophysiology footprint, creating an at-scale services business with improved growth and operational benefits.
"The addition of Biotronic enhances our service offerings and provides enormous potential to deliver greater integration across our procedurally-integrated portfolio, which uniquely differentiates NuVasive in the markets we serve."
The acquisition is expected to increase NuVasive’s existing portfolio of spine services by adding enhanced surgical monitoring and oversight capabilities offered by Biotronics hence boosting the medical device firm’s market presence across the US and enhance the quality of care and range of services offered by NuVasive.
On a financial aspect, the transaction is projected to create an immediate positive impact on NuVasive’s non-GAAP earnings per share for this year as well as for the next year.
It is also expected to support the company’s previously issued 2016 non-GAAP operating margin guidance of 15.8% and boost their revenue growth.
In this transaction, NuVasive is being served by Bank of America Merrill Lynch as an exclusive financial advisor and DLA Piper serving as its legal counsel, while Biotronic is being served by McDermott Will & Emery as the legal counsel.