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Merit Medical (NSDQ:MMSI) said today that it paid $97.5 million in cash to acquire DFine and created a new division to incorporate DFine’s spine devices.
San Jose, Calif.-based DFine makes the StabiliT line of devices, for injecting bone cement into vertebral fractures, and the Star spine tumor ablation system. Jordan, Utah-based Merit said its new interventional oncology & spine division will unite those products with its own line of oncology devices, including embolics, microcatheters and biopsy products.
DFine put up $33.4 million in sales last year, ¾ of that coming from the U.S. Both of its devices have 510(K) clearance in the U.S. and CE Mark approval in the European Union, Merit said.
Some of the nearly $98 million purchase price will be used to pay off about $28 million in DFine debt and to cover deal expenses, according to a regulatory filing; another $9.75 million went into an 18-month escrow account against indemnification claims for Merit, with a further $5 million put into a 9-month escrow account to cover Merit’s costs if the integration expenses are greater than expected.
