According to the release, 100 percent of outstanding Scient'x stock will be exchanged pursuant to a fixed ratio for 24 million shares of the Alphatec's common stock as part of the agreement. The transaction is currently expected to close by the end of the first quarter of 2010. Alphatec expects 2010 pro forma full-year revenues to be in a range of $220 million to $225 million, and pro forma full-year 2010 adjusted EBITDA to be in a range of $32 million to $35 million.
The combined company will create the third-largest independent spinal company with a global span of product distribution, according to the release. Scient'x is the largest privately held independent spine company outside of the United States with product distribution in over 50 countries.
The transaction was unanimously approved by a Special Committee of independent members of the Alphatec's board of directors.
According to the release, Alphatec expects the following benefits from the acquisition of Scient'x:
- Increases scale and global presence in all major geographic markets;
- Provides cross-selling opportunities in major markets to leverage future growth across core spine products and Aging Spine products;
- Strengthens and expands Alphatec's product portfolio with differentiated products in all segments;
- Enhances Alphatec's ability to educate, train and service its spine surgeon customers;
- Provides cost synergies in distribution, marketing and administration infrastructure; and
- Diversifies potential future U.S. healthcare reform and regulatory risks.
Read the release about Alphatec's acquisition of Scient'x.