Producer of bone and joint restoration products, Exactech Inc. (EXAC) recently announced that it has acquired BlueOrtho SAS – a firm engaged in computer-assisted surgical technology development and manufacturing.
Per the terms of the newly inked deal, Exactech will pay up to 10 million euros for the complete share acquisition. Of this, 2 million euros have already been paid at the close of the transaction on Jan 15, 2015. The agreement also includes a potential earnout amount of up to 8 million euros, subject to Exactech achieving certain surgical case milestones using the Exactech Guided Personalized Surgery (GPS) technology.
Notably, Exactech has been in a partnership with BlueOrtho SAS since 2009. The two companies had jointly developed the ExactechGPS Guided Personalized Surgery system. Though the system was initially introduced way back in 2010, it was fully launched only last year. The ExactechGPS system currently equips the company’s knee systems.
Going ahead, the company has plans in store to introduce the ExactechGPS system, particularly designed for the shoulder.
The ExactechGPS system is devised to help orthopedic surgeons by providing real-time visual guidance and alignment data in total joint arthroplasty. The system comprises a touch screen and proprietary camera system within the sterile field. The technology exhibits high levels of accuracy and precision through mechanical testing.
Per management, this acquisition will help create a standard of care par excellence in total joint arthroplasty combining engineering and design expertise, understanding of clinical issues in patient handling and robust development plans.
We feel the BlueOrtho acquisition may prove an accretive investment in the long run. The ExactechGPS system, refined further, will also be able to drive top-line growth, going forward.
Zacks Rank
Currently, Exactech has a Zacks Rank #3 (Hold).
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Read more: http://www.nasdaq.com/article/exactech-acquires-surgical-technology-partner-blueortho-analyst-blog-cm435079#ixzz3PZESOkgZ
