NuVasive signed a definitive agreement to acquire SafePassage, a privately held intraoperative neurophysiological monitoring services provider.
Here are five things to know:
1. Post-acquisition, NuVasive Clinical Services will have more than 550 neurophysiologists and oversight physicians in the U.S., making it the largest outsourced IONM services provider in the country.
2. NuVasive formed its intraoperative neuromonitoring business in July 2016 and has since acquired Biotronic NeuroNetwork and combined its services with the company's subsidiary, Impulse Monitoring. NCS has scaled the business since then to achieve operational efficiencies and drive better clinical outcomes.
3. NCS expects to support more than 100,000 IONM cases in the U.S. annually after acquiring SafePassage. "The acquisition of SafePassage advances the NuVasive services strategy and expands our ability to transform how spine procedures are approached, measured and valued from a clinical and economic perspective," said Skip Kiil, executive vice president of global commercial of NuVasive.
4. The terms of the transaction were not disclosed, but NuVasive expects the transaction to be accretive to the company's non-GAAP earnings per share in 2018 and beyond. The acquisition is also expected to support NuVasive's long-term revenue growth targets and the expansion of its non-GAAP operating and EBITDA margins.
5. The transaction, which is expected to close in January 2018, will likely meet the company's goals for return on invested capital for tuck-in acquisitions in three years.