Wright Medical (NSDQ:WMGI) put some more skin into its play for the orthopedic extremities market with a pair of acquisitions announced yesterday, saying it paid $90 million for Solana Surgical and agreed to a $36 million deal with OrthoPro.
The Solana deal, which closed yesterday, saw Wright pay $47.6 million in cash plus another $42.4 million shares of WMGI stock, according to a press release. The OrthoPro deal, expected to close next month, calls for a $32.5 million cash payment and another possible $3.5 million in revenue-based milestones, according to the release.
"The acquisitions of Solana and OrthoPro are excellent fits for our extremities business, enabling us to add a base of fast-growing extremity revenue that we can effectively grow on a go-forward basis. Both of these transactions meet our criteria of being accretive to revenue growth and adjusted EBITDA. In addition, products from both companies will complement our existing foot and ankle portfolio and include several specialized products that expand our extremities product offering. Both companies have a reputation for leading innovation, and we anticipate that their products will help expand Wright’s position as the definitive technology leader in the foot and ankle market," Wright president & CEO Robert Palmisano said in prepared remarks.
Solana won 510(k) clearance from the FDA last month for its CrossCheck plating system for ankle and foot procedures.
"We are delighted to partner with a company that shares Solana’s commitment to building a high-growth extremities business. We believe that Wright Medical, with its global leadership position in the foot and ankle market and expertise in medical education and product development, is the ideal partner to accelerate our growth and realize the full potential of Solana’s products around the world. We look forward to an exciting future and the continued success of our business as part of Wright Medical," CEO Alan Taylor said in prepared remarks.
"This combination will provide the opportunity for further expansion of OrthoPro’s innovative products to support market growth and procedure penetration worldwide. We look forward to advancing our foot and ankle business with the recognized leader in the foot and ankle market," added OrthoPro CEO Dustin Leavitt.