Alphatec acquired SafeOp Surgical, a privately held advanced neuromonitoring technology provider.
Here are five things to know:
1. In conjunction with the acquisition, Alphatec announced a $50 million capital raise, using part of the funds on the acquisition. Alphatec purchased the company for $15 million in upfront cash, a $3 million convertible note, and issuance of 3.3 million shares of common stock and warrants to purchase 2.2 million shares of common stock at $3.50 per share.
L-5 Healthcare Partners led the private placement, which included certain directors and executive officers of Alphatec as well as the new and existing institutional independent investors.
2. SafeOp is eligible to receive another 1.3 million shares of common stock if the company achieves performance milestones.
3. SafeOp's advanced neuromonitoring technology is designed to lower the risk of nerve injury while eliminating the need for a technician or other neuromonitoring professional for most procedures.
4. The patented SafeOp technology was developed through surgeon feedback. "The integration of this key technology into our spine procedures will address unmet clinical needs and improve surgical outcomes of the spine," said CEO Patrick Miles. "We expect the combination to accelerate our business by increasing procedural revenue and driving pull through across our entire portfolio."
5. Alphatec also made leadership changes, naming Mr. Miles CEO; the company's former CEO Terry Rich is now president and COO. Dr. Luiz Pimenta was appointed CMO.