RTI Surgical (NSDQ:RTIX) said last week that it closed the $300 million acquisition of Paradigm Spine and its Coflex lumbar stenosis device.
The cash-and-stock deal, originally announced last November, called for RTI to pay $100 million in cash and more than 10.7 million shares of its own stock worth $50 million, with the $150 million balance pegged to unspecified milestones in cash and stock.
New York City-based Paradigm’s Coflex device won pre-market approval from the FDA in 2012.
“The acquisition of Paradigm aligns with RTI’s growth strategy focused on investing in differentiated products and building scale within our spine business,” RTI president & CEO Camille Farhat said in prepared remarks. “The addition of Coflex allows RTI to provide surgeons who treat patients with moderate to severe LSS a PMA-approved device supported by more than 12 years of clinical data and with expanding coverage from payors. With RTI’s demand generation expertise, scale and infrastructure and the experience of key members of the legacy Paradigm Spine team joining RTI, we are well-positioned to grow coflex as the treatment of choice and standard of care for appropriate LSS patients.”
Piper Jaffray advised Alachua, Fla.-based RTI on the deal, with Sidley Austin and Holland & Knight as counsel for the transaction and financing, respectively. Dorsey & Whitney was legal counsel to Paradigm Spine.
