Globus Medical (NYSE:GMED) said it paid an undisclosed amount to acquire surgical robotics company Excelsius Surgical and its positioning platform for spine and brain procedures.
The Excelsius system is designed to integrate intra-operative digital imaging with a robotic surgery device to hold patients in place during surgeries “with sub-millimeter accuracy,” according to a press release.
Although financial terms of the deal are under wraps, Leerink Swann analyst Richard Newitter speculated this morning that the purchase price is in the $20 million to $40 million range.
“Although management did not provide details on the purchase price it noted to us that the deal was ‘well below’ the threshold of materiality, which we understand to be ~10% of total assets (GMED had ~$524M Total Assets at the end of 3Q13)–so we’re guessing somewhere in the $20-40M range (GMED’s 3Q13 cash balance: ~$264M),” Newitter wrote in a note to investors.
Globus said it expects the Excelsius system to win FDA clearance next year, with commercialization to follow in 2016. The acquisition is expected to dilute 2014 earnings per share by 5¢ to 7¢, according to the release.
“We are very excited by the strategic fit and potential of Excelsius Surgical. Our product development efforts focus on products designed to minimize tissue disruption, blood loss and surgical complications, and we believe that the use of advanced technology solutions, such as the Excelsius Surgical system, will enable surgeons to consistently achieve better surgical outcomes,” Globus chairman & CEO David Paul said in prepared remarks. “Recent trends in the adoption of navigation technology as well as advancements in imaging only serve to reinforce our belief that technology will play an increasingly greater role in surgery in the future. We believe that this acquisition positions Globus to be a leader in this important area.”
“We started Excelsius Surgical to develop a surgical technology that would improve clinical outcomes. We combined robotics and imaging with the goal of enabling surgeons to reproducibly and cost effectively perform robotically assisted, minimally invasive surgery with fewer complications and less trauma, as well as reducing radiation exposure for patients, surgeons and operating room personnel. We are proud of our development progress to date and believe that Globus will be a great partner to bring this technology to the market,” added Excelsius co-founder Dr. Nicholas Theodore of the Barrow Neurological Institute in Phoenix.
