Xtant Medical Holdings, Inc. has completed its acquisition of Surgalign Holdings, Inc.’s biologics and spinal fixation business for $5 million plus assumed liabilities.
The all-cash transaction was completed under the supervision of the United States Bankruptcy Court for the Southern District of Texas, Houston Division. The bankruptcy court approved the transaction at a hearing earlier this month. The purchased assets include inventory, intellectual property, intellectual property rights, contracts, and owned equipment related to Surgalign’s domestic and international biologics and spinal fixation business. A complete list of the assets was not disclosed.
Xtant and Surgalign first entered into an asset purchase agreement in June 2023. The agreement coincided with Surgalign’s initiation of bankruptcy proceedings. For OTW’s coverage, see “Surgalign Declares Bankruptcy.”
In July 2023, in connection with its bankruptcy proceedings, Surgalign filed a notice of successful bidder. In the notice it announced Xtant as the “successful bidder in the auction for certain of the Seller’s [Surgalign] assets and liabilities related to its domestic and international biologics and spinal fixation offerings.”
Xtant is a global medical technology company. According to the company, it has a “comprehensive portfolio of orthobiologics and spinal implant systems to facilitate spinal fusion in complex spine, deformity and degenerative procedures.”
At this time, the company has not provided full year sales and earnings guidance based on this acquisition. However, Xtant will provide more information when managements announces the results from the September quarter and holds its call with Wall Street analysts and investors.
Earlier this month Xtant did announce that management had raised guidance to a full year 2023 revenue range to $75 million to $77 million, up from the company’s prior guidance of $73 million to $75 million.
Xtant Medical President and CEO Sean Browne said, “We are thrilled to add to our growing orthobiologics and spinal fusion device portfolio, while expanding our commercial footprint with new contracts and distributors with the completion of this acquisition.”
Browne continued, “Looking ahead, our focus will be integrating this business with our current offerings with the goal of maximizing the full potential of these assets.”
