For Integra, the Princeton, N.J., medical-technology company, the deal sharpens its focus on products in neurosurgery, surgical instruments and regenerative medicine “and move us closer to achieving our long-term growth and profitability targets," President and Chief Executive Peter Arduini said in a statement.
Smith & Nephew, the London medical-tech specialist, said the Integra portfolio "is highly complementary" to its current orthopedics offering.
"The full portfolio includes devices, implants, and instruments which provide for shoulder replacement as well as reconstruction of bone in the hand, wrist and elbow ... and foot and ankle," S&N said.
Extremity Orthopaedics “has a well-regarded specialized sales channel and a strong pipeline of new products,” Skip Kiil, president of global orthopedics at Smith & Nephew, said.
Extremity Orthopedics operates from Austin -- including a surgeon-training facility -- and from Lyon, France. Around 300 employees will join Smith & Nephew, the companies said.
The business being acquired generated revenue of $90 million in 2019 and posted a "small loss," S&N said. Revenue in first-half 2020 was $32.7 million.
For Smith & Nephew, the acquisition will be "slightly dilutive" to profit in 2021 and 2022 while generating double-digit revenue growth, the company said.
For Integra the deal won't materially affect its 2020 financials, the company said. It added that it might use the proceeds to cut debt and to invest in current businesses and outside opportunities.
As part of the deal, Integra will pay $41.5 million to the Consortium of Focused Orthopedists. The payment reflects agreements between the company and the group related to shoulder-arthroplasty products.
Integra and Smith & Nephew expect to close the deal this year, subject to conditions including regulatory clearances and negotiations with representatives of employees.