Bacterin purchased outstanding common stock of X-spine Systems to create a new company, Xtant Medical.
Here are seven things to know:
1. Bacterin purchased X-spine’s outstanding common stock in exchange for around 4.24 million shares of Bacterin common stock and around $60 million in cash. The transaction is subject to customary working capital adjustments, including around $13 million extinguishment of X-spine debt.
2. Post-transaction, Bacterin will be a comprehensive supplier for spine surgery procedures offering both hardware and biologics through a more substantial national distribution footprint.
3. Bacterin has a stronger financial profile after acquiring X-spine, including more than $80 million of revenue and a positive EBITDA.
4. X-spine’s products have an emphasis on less invasive treatment for the degenerative spine and they complement Bacterin’s orthobiologics portfolio. Many of the X-spine procedures could use Bacterin’s orthobiologic material.
5. An amended and restated $42 million senior secured data facility with OrbiMed and $65 million of convertible senior notes will fund the transaction. William Blair & Company served as financial advisor to Bacterin for the transaction.
6. Bacterin will change its name to Xtant Medical Holdings post-transaction.
7. David Kirschman, MD, is the CEO of X-spine currently. He will join the Xtant Medical management team as executive vice president and chief scientific officer. He will also be the president of X-spine Systems, the company’s hardware subsidiary, and serve on the Xtant Medical board of directors.