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Bacterin to purchase outstanding shares of X-spine Systems, create Xtant Medical Holdings
Bacterin recently announced it intends to purchase outstanding shares of X-spine Systems in exchange for approximately 4.24 million shares of Bacterin common stock and approximately $60 million in cash.
“This transaction joins two strong and growing organizations and reinforces the strategic initiatives outlined earlier this year to expand our product offerings, strengthen customer relationships and expand our distribution capabilities,” Dan Goldberger, Bacterin’s CEO, said in a company press release. “With the addition of X-spine, we will have a stronger financial profile, with over $80 million of revenue and positive EBITDA [earnings before interest, taxes, depreciation and amortization].”
The agreement is subject to working capital adjustments and will include the removal of approximately $13 million of debt from X-spine. Upon completion of the transaction, Bacterin will change its name to Xtant Medical Holdings. David Kirschman, MD, current CEO of X-spine, will serve as executive vice president and chief scientific officer of Xtant Medical Holdings. Kirschman will also be president of X-spine Systems, the hardware subsidiary of the company, and will be appointed to the Xtant Medical Holdings board of directors.
“This transaction will increase the scope of our organization with a new, diversified portfolio of products focused on the orthopedic and spine markets,” Kirschman said in the release. “Furthermore, we will be able to offer those diversified products to our established customer base, representing an accessible revenue growth opportunity for the combined business.”
Reference: www.bacterin.com.