CARLSBAD, Calif., Sept. 27, 2012 (GLOBE NEWSWIRE) -- Alphatec Holdings, Inc. (Nasdaq:ATEC), the parent company of Alphatec Spine, Inc. (the "Company"), announced today that its board of directors has approved the Company's plans to acquire certain assets of Phygen, LLC, a spinal implant manufacturer based in Irvine, CA. The purchase price for the assets is approximately $15.2 million in stock and cash. On August 7, 2012, Alphatec Spine first announced that it had signed a letter of intent to acquire the assets of the company.
"Since becoming CEO of Alphatec Spine earlier this year, our growth strategy for 2012 and beyond includes a focus on new product launches and acquisitions," said Les Cross. "We have since launched new products such as our BridgePoint™ Spinous Process Fixation System, acquired exclusive U.S. distribution rights to market a synthetic bone growth biologic under our own brand name of Alphatec NEXoss™ and we have plans to acquire certain assets of Phygen, LLC, which we hope to close shortly. It is clear we are executing our new business strategy."
Noted Neurosurgeon, Mark Renfro, M.D., a member of Phygen's Board of Governors, stated, "Phygen is delighted by this transaction with Alphatec. Upon closing, Phygen will look to bring its innovative product development process, which has a foundation in design input from active spine surgeons and strategic direction from Phygen's Scientific Advisory Board, into the Alphatec family. All in all, I believe that this proposed transaction is a real win-win for Phygen and Alphatec."Alphatec Spine said that it expects this transaction to contribute approximately $15 million in revenue in 2013 and be accretive to fully diluted GAAP earnings per share in 2013. Additional details regarding the transaction will be provided if and when the acquisition is closed. The closing of this transaction is subject to the approval of a majority of the members of Phygen, the execution of the definitive documents and customary closing conditions set forth in the definitive documents.