CONMED Corporation has announced its acquisition of privately held Memphis, Tennessee-based In2Bones Global Inc. on a cash-free and debt-free basis. CONMED paid $145 million at closing with up to an additional $110 million in earnout payments over the following four years.
International orthopedic medical device company In2Bones Global supplies products to treat injuries and disorders of the upper and lower extremities. Their product portfolio includes biologics, implants, fracture systems and related hardware. CONMED, of course, is one of the oldest suppliers of orthopedic MIS products.
In2Bones President and Chief Executive Officer Alan Taylor said, “Our talented team has worked tirelessly to build a comprehensive and efficient set of solutions focused on successful reproducible outcomes for extremities surgery, and we are excited to join CONMED. The CONMED team clearly shares our focus on people and clinical innovation to address unmet needs, and we look forward to continuing to advance our solutions and deliver them to patients across the globe.”
Transaction financing will come from company net proceeds as well as 2.25% convertible notes, credit facility borrowings, and cash on hand. In late July, the company will offer additional info on the transaction’s impact on 2022 financial results. In 2021, In2Bones had a revenue of $36.8 million, at roughly 80% gross margins. The acquisition is expected to add approximately $20 million to CONMED’s revenue in the second portion of 2022.
“This acquisition is a natural strategic extension of our Orthopedic portfolio,” stated Curt R. Hartman, CONMED Chair of the Board, President, and Chief Executive Officer. “In2Bones is an exciting platform for CONMED to enter the extremities market given its broad portfolio, extensive sales channel, and experienced leadership team. We look forward to welcoming the In2Bones team to CONMED.”
