OrthoPediatrics (Nasdaq:KIDS) today announced that it is acquiring MD Orthopaedics in a transaction valued up to $19.6 million.
The Warsaw, Indiana-based will acquire MD Orthopaedics and its bracing product lines and Mitchell Ponseti ankle-foot orthosis system to treat clubfoot. Under terms of the agreement, OrthoPediatrics is buying the Wayland, Iowa-based company for an upfront cash payment of $8.2 million and $8.9 million in company stock with an additional $2.5 million in restricted stock which vest after three years.
MD Orthopaedics is a privately-held company that develops and commercializes custom fit bracing systems that support the gold standard treatment for clubfoot known as the Ponseti Technique. It will be integrated into OrthoPediatrics’ trauma and deformity business and will continue to focus on the treatment of clubfoot.
OrthoPediatrics plans to grow the MD Orthopaedics product offerings and develop new technology that addresses other unmet needs for specialty bracing in the pediatric market.
“We believe MD Orthopaedics will be a springboard for our expansion into pediatric orthopedic non-surgical treatments for kids and further supports our mission of helping children living with orthopedic conditions. The addition of non-operative specialty bracing systems advances our growth strategy of providing a broad product portfolio uniquely designed to treat children while surrounding pediatric orthopedic surgeons with the most comprehensive product offering in the market,” OrthoPediatrics CEO David Bailey said in a news release.