Alphatec Holdings, Inc. parent firm of Alphatec Spine, Inc. is spending $15.2 million in cash and stock to acquire Phygen, LLC, a spine implant manufacturer based in Irvine, California. Upon the recent approval by its board of directors, Alphatec signed a letter of intent to acquire the assets of the Phygen.
Les Cross, who became CEO of Alphatec Spine earlier this year, announced that his growth strategy for the company includes “a focus on new product launches and acquisitions. We have since launched new products such as our BridgePoint™ Spinous Process Fixation System, and acquired exclusive U.S. distribution rights to market a synthetic bone growth biologic under our own brand name of Alphatec NEXoss. It is clear we are executing our new business strategy.”
Neurosurgeon, Mark Renfro, M.D., a member of Phygen’s Board of Governors, said, “Phygen is delighted by this transaction with Alphatec. Upon closing, Phygen will look to bring its innovative product development process into the Alphatec family. All in all, I believe that this proposed transaction is a real win-win for Phygen and Alphatec.”
Alphatec Spine said that it expects the transaction to contribute approximately $15 million in revenue in 2013 and be accretive to fully diluted GAAP earnings per share in 2013. The closing remains subject to the approval of a majority of the members of Phygen and the execution of the definitive documents.
